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HomeMy WebLinkAboutcoa.lu.pu.Aspen Mountain Preliminary.05313-83-84#348864 09/23/92 09:46 Rec $35.00 BK .689 PG 317 / Silvia Davis, Pitkin Cnty, Clerk., Doc $.00 SECTION M AMENDMENT TO THE FIRST AMENDED AND RESTATED PLANNED UNIT DEVELOPMENT /SUBDIVISION AGREEMENT FOR THE ASPEN MOUNTAIN SUBDIVISION THIS AMENDMENT to the First Amended and Restated Planned Unit Development /Subdivision Agreement for the Aspen Mountain Subdivision ( "PUD Agreement "), being entered into between the City of Aspen, Colorado ( "City ") and Savanah Li .ted Partnership ( "Savanah" or "Owner ") on_this day of , 1992, provides as follows: R E C I T A L S WHEREAS, on May 21 1992, Savanah submitted a written peti- tion to the City pursuant to Section M of the PUD Agreement seeking an extension in the construction schedule deadline governing construction and development of Lot 6, the proposed Ice Rink and Park, within the Aspen Mountain Subdivision; and WHEREAS, a hearing was conducted before the City Council on July 13, 1992, in accordance with Section M of the PUD Agreement relating to requests for extension of one.or more time periods required for performance, during which Savanah successfully demonstrated that the.reasons necessitating the extension in the existing construction schedule deadline were beyond its control; and WHEREAS, Section M of the PUD Agreement authorizes exten- sions of the time periods for construction schedules upon a proper showing; and WHEREAS, Section 0(6) of the PUD agreement authorizes amendments to the Agreement by written instrument executed by the parties thereto. NOW, THEREFORE, in consideration of the mutual covenants and conditions as contained herein, it,is agreed that the provisions hereinbelow shall amend the PUD Agreement as follows: 1. Savanah's construction schedule deadlines as set forth in Section. A2 of the PUD Agreement,.and as previously amended by those Section M amendments executed on June 11, 1990, (recorded in Book 627 at Page 457 in the records of the Pitkin County , Recorder), and on June 10, 1991, (recorded in Book 654 at Page 418 in the records of the Pitkin County Recorder), are amended to provide as follows: From To Certificate of Occupancy Ice Rink /Park 10/1/92 10/1/93 • #348864 09/23/92 09 :46 Rec $35.00 BK 699 PG 318 Silvia Davis, Pitk:in Cnty Clerk, Doc $.Oil 2. The amended construction schedule deadline as provided for in paragraph 1 above shall be and remain in force and effect only insofar as Savanah complies with all of those terms and conditions as set forth in that written decision of the City Council of the City of Aspen attached hereto as Exhibit "1" and incorporated herein that was issued upon and in response to ;Savanah's petition of May 20, 1992, seeking a Section M amend- ment. 3.. All other terms and conditions of the PUD Agreement and the previous Section M amendments dated June 11, 1990, and June 10, 1991, not inconsistent with or superseded by this amendment, shall remain in full force and effect. . 4. This amendment document shall be promptly recorded in the records of the Pitkin County Clerk and Recorder's office. IN WITNESS WHEREOF, the parties have hereunto set their signatures on the.day and year as first written above. THE CITY OF ASPEN By : �� 3. ! 3.....w"v John S. Bennett, Mayor ATTEST: 424��� V 1_,6L Kathryn Lt. Koch, City Clerk STATE OF COLORADO ) ) ss. County of Pitkin ) The fore ng instrument was acknowledged before me this day of 01 1992, by John S. Bennett as Mayor and Kathryn S. Koch a City Clerk of the City of Aspen, Colorado. ASS'.. MY HAND' AND OFFICIAL - /SEAL. mission expires: Notary Public 2 6eq PG #348864 09*/9 09 :46 Rec X35.0 0 . • Silvia Davis, Fitkin Cnty Clerk, Doc x.00 319 4 By: By: AM AS TO ORM: Attor,ey of Savanah Limited Partnership 600 E. Cooper Avenue, Aspen, Colorado Address SAVANAH LIMITED PARTNERSHIP ASPEN ENTERPRISES INTERNATIONAL, INC., General Partner _f �e " ';611 atl_ L, ��' , 49 A& Charles E. Wallace Vice- President STATE OF C'al;fornia ) ss. County of T,ns Angeles ) The foregoing instrument was acknowledged before me this 4th day of September 1992, by Charles E. Wallace, Vice - President WITNESS MY HAND AND OFFICIAL SEAL. My commission expires: May 16, 1995 OFFICIAL NOTARY SEAL LAURIE SIMN No PubliCalifornia c = LOS ANGELES COUNTY Notar y Public Laurie Simon My Comm. Expiros MAY 16.1995 " _2049 Century Park East, Los Angeles, CA Address 3 X351804 1 ^ / 14 10:33 Rec $5 e 00 Bf 697 F� Silvia Davis, -'it.k:in Cnty Clerk:-; Doc .� -00 COVENANT DESIGNATING PARKING SPACES FOR EMPLOYEE USE KNOW ALL MEN BY THESE PRESENTS, that Savanah Limited Partnership, a District of Columbia Limited Partnership, the owner of Lot .1,_ the Aspen Mountain Subdivision and Planned Unit Development ( "Lot 1 "), according to the Amended Plat thereof recorded in Plat Book 17 at Pages 99 , et seq. , (the "PUD ") and . according to the First Amended and Restated Planned Unit Development/Subdivision Agreement for the Aspen Mountain Subdivision ( "PUD Agreement ") recorded in Book 574 at Pages 792, et seq. , all reference being to the Pitkin County, Colorado real property records, and all improvements constructed thereon, pursuant to Paragraph 13 of Section H of the -PUD Agreement does hereby publish and declare that thirty (30) parking spaces within the Southwest Corner of the Ballroom Level of the parking garage beneath the hotel constructed on Lot 1 ( °Hotel':.) are herewith* erewith ,designated and, prior to and as a condition of the opening of the Hotel to the' - bl c. ;shall be. so! marked exclusively for the longterm automobile storage of employees of; the Hotel „who, are. housed other than within accommodations located within the Hotel orrconstructed'on,:Lot 5 of the:"PUD. The foregoing shall,.be.ddemeda- covenant that runs with and burdens the title to Lot 1 and the owner(s) at anytime thereof for the specific benefit of and shall be enforceable by the City of Aspen by ,all, appropriate means unless and until released in writing by the City of Aspen. IN WITNESS WHEREOF, this Covenant. Designating Parking Spaces for Employee Use has been made and entered into as of the / f— day of Lp 1992. SAVANAH LIMITED PARTNERSHIP, a District of Columbia Limited Partnership By. erdin d L. Belz III Execu r've Director S r • • #348864 09/23/92 09:46 Rec $35.00 BtK: 689 PG 320 Silvia Davis, Ritkin Cnty Clerk, Doc $ -00 BEFORE THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO IN RE THE MATTER OF SAVANAH LIMITED PARTNERSHIP'S REQUEST FOR A SECTION M AMENDMENT TO THE FIRST AMENDED AND RESTATED PLANNED UNIT DEVELOPMENT /SUBDIVISION AGREEMENT FOR THE ASPEN MOUNTAIN SUBDIVISION This matter is before the City Council upon the petition of Savanah Limited Partnership ( "Savanah " -) -pursuant to Section M.of the First Amended and Restated Planned Unit. Development/Sub- division Agreement for the Aspen Mountain Subdivision ( "PUD Agreement "), seeking a certain extension in the construction scheduling for subdivision development. Pursuant to Savanah's petition, a public hearing was convened in accordance with Section M of the PUD Agreement and conducted pursuant to City Council's hearing procedures. Savanah appeared, with legal counsel, and produced testimony and other evidence in support of its petition. Having heard all of the offered testimony and argument and having reviewed the documentary evidence as submit- ted and made part of the record herein, the City Council finds as follows: 1. On May 21, 1992, Savanah submitted a written petition to the City pursuant to Section M of the PUD Agreement seeking an extension in the present construction schedule deadline governing construction and development of Lot 6, the proposed Ice Rink and Park, within the Aspen Mountain Subdivision. 2. Section M of the PUD Agreement provides as follows in its relevant part as pertinent hereto: "... the Owner or its successors or assigns may, on its own initiative, petition the City Council for a vari- ance, an amendment to this Agreement, or an extension of one or more of the time periods required for perfor- mance under the Construction Schedules or otherwise. The City Council may grant such variances, amendments to this Agreement, or extensions of time as it may deem appropriate under the circumstances. The parties ex- pressly acknowledge and agree that the City Council shall not unreasonably refuse to extend the time peri- ods for performance indicated in one or more of the Construction Schedules if Owner demonstrates by a preponderance of the evidence that the reasons for the delay(s) which necessitate such extension(s) are beyond #348864 09/2. 2 « 9., 46 Rec Silvia Davis Pitk:in Cnty .7 $35.00 BK 699 Ps 321 Clerk, Doc $.00 the control of Owner, despite good faith efforts on its part to perform in a timely manner." 3. Savanah seeks extensions in the current construction schedule deadlines as follows: Certificate of Occupancy Ice Rink /Park . 4. Savanah has alleged that the circumstances have caused delays in the tion of the Ice Rink /Park component and circumstances were beyond its control: From To 10/1/92 10/1/93 following facts and /or progress of the construc- that such facts and i. The David Koch Foundation of Wichita, Kansas, by and through its authorized representatives, has offered to build an ice rink on or near Wagner Park in the City of Aspen. A Schematic Design Package for the proposed.Wagner Park Ice Rink presented to City Council on May 11, 1992, describes an ice rink capable of being used primarily for recreational skating with potential for ice shows, limited hockey use and skating instruc- tion. ii. The City Council, Savanah and the David Koch Foundation require additional time to evaluate the Wagner Park Ice Rink proposals and designs in conjunction with the Ice Rink /Park component of the Aspen Mountain Subdivision PUD Agree- ment to determine which ice rink and location would be in the best interest of the City of Aspen. iii. Because of delays in the planning and review process of Savanah's ice rink /park proposal precipitated by the Koch Proposal, should City Council determine that it is in the City's best interests to.proceed with the ice rink /park proposal of Savanah on Lot 6 of the Aspen Mountain Subdivision, Savanah will be unable to complete the. ice rink /park by October 1, 1992, the date therefor established in the Amendment to the PUD Agree- ment dated June 10, 1991. While delays in the planning process occasioned by the intervention of the Koch Proposal may have only been a few months, construction constraints, particularly the pouring of a large slab of concrete for the ice rink, necessi -ate a full one -year extension of the deadline. 5. City Council finds that Savanah has been able to demonstrate by a preponderance of the testimony and evidence as established in the record that the time required by City Coun -ii, Savanah and the David Koch Foundation to evaluate the best s--',--e 6 #348864 09/23/92 09 :46 Rec $35.00 Eck' 699 PG 322 Silvia Davis, Pitkin Cnty Clerk, Doc x.00 I proposal for an ice rink has caused unavoidable delays in the progress of construction for Lot 6 of the Aspen Mountain Subdivi- sion that are beyond the control of Savanah despite its good faith efforts to perform. NOW, THEREFORE, BASED UPON THE ABOVE AND FOREGOING, City Council does hereby grant to Savanah Limited Partnership the following extension to the construction schedule deadlines for the Aspen Mountain Subdivision, which extension shall be incorpo- rated into a written amendment to the PUD Agreement pursuant to Sections M and 0(6), subject to those terms and conditions as set forth below: EXTENSION From To 1. Certificate of Occupancy Ice Rink /Park 10/1/92 10/1/93 CONDITIONS 1. Prior to issuance of a Certificate of Occupancy for Hotel Phase I, and as'a condition precedent thereto, Savanah shall deposit $700,000.00 in an escrow fund for the benefit and in the name of the City of Aspen to secure Savanah's performance in regard to the following: (1) The establishment of a permanent fund to defray operation and maintenance costs for the Wagner Park Ice Rink in the event the City should deter- mine to authorize such ice rink; or (2) Construction by Savanah of an ice rink /park as approved by the Aspen City Council and as required by the PUD Agreement on Lot 6 of the Aspen Moun- tain Subdivision. In such event, Savanah may be permitted to periodically draw down or reduce the escrow amount upon the authorization of the Direc- tor of Public Works and Planning Director corre- sponding with the progress toward the successful completion of the ice rink /park. All documents establishing the escrow and the escrow instructions.shall be in a form satisfactory to the City F---or- ney. 2. Prior to issuance of a Certificate of Occupancy =_r the Hotel Phase I, and as a.condition precedent thereto, Savant shall clean and improve Lot 6 by removing all construe. ion 3 0 #348864 09/23/92 09:46 Rec $35.00 B Silvia Davis, Pitkin Cnty Clerk:, Doc 669-PG 323 $.00 materials, equipment, debris and fencing therefrom, regrade the lot as necessary to allow pedestrian traffic, and aesthetically improve the site as reasonably required by the Public Works Director and Planning Director. 3. In the event that City Council grants development approval to the David Koch Foundation.for development of the Wagner Park Ice Rink, Savanah shall thereafter seek all requisite amendments to the PUD Agreement, final PUD development plan, and other applicable development approvals within a reasonable time period in order to construct and maintain a municipal park on Lot 6 of the Aspen Mountain Subdivision. 4. The effectiveness-of the extension'as granted herein shall be contingent upon Savanah's compliance, as determined.by the City staff, with all of those conditions as set forth above. In the event that any "condition as set forth above is not sub- stantially complied with, then the extension granted herein shall automatically be rendered invalid and such failure(s) to comply shall constitute non - compliance with the First Amended and Restated PUD /Subdivision Agreement. Savanah,shall thereafter be entitled to a hearing before City Council to determine sanctions or penalties for its non - compliance, which may include the revocation or termination of any or all approvals contained in the PUD Agreement. Done this day of 1992. ATTEST: jc62.3 a CITY COUNCIL OF THE CITY OF ASPEN, COLORADO By: s, (3 John S .Bennett, Mayor M . t9l TBANSMITTAL r Savanah Limited Partnmbip 303-925-4272'A 600 E. Cooper Ave, Suite 200 Fe # 303 - 9254387 Aspen, Colorado 81611 % DATE: 16 September 1992 C TO: Jed Caswall FROM: Ferd Belz RE: Section M Amendment to The First Amended and Restated Planned Unit Development /Subdivision Agreement for The Aspen Mountain Subdivision CC: Perry Harvey VIA: Hand- Delivered ' Please Find Enclosed: One (1) signed copy of the Section M Amendment to The First Amended and Restated Planned Unit Development /Subdivision Agreement for The Aspen Mountain Subdivision. Please inform uAmtm"ately if you do not receive this transmission in Cull. r' i 1 ` • LAW OFFI(S OF JOHN D. MUSICK, JR. & AOCIATES •� P.O. Box 4r9 • Boulder, Colorado 803064579 • Telephone (303) 447 -1974 Admitted in California, Colorado, Hawaii, Illinois, New York, Wyoming and District of Columbia Offices in Aspen and Boulder, Colorado and Los Angeles, California 08/31/92 Edward M. Caswall, Esq. City Attorney City of Aspen 130 South Galena Street Aspen, CO 81611 Ms. Amy Margerum City Manager City of Aspen 130 South Galena Street Aspen, CO 81611 Mr. Robert Gish Public Works Director City of Aspen 130 South Galena Street Aspen, CO 81611 Mr. Larry Ballenger Water Department Director City of Aspen 130 South Galena Street Aspen, CO 81611 ASPEN SUMMARY OF CURRENT BILLING ASPEN -01 General Legal (PO 100537) ASPEN -02 Misc Annex /Wtr Ext /Agree (PO 100537) SEP 1 & 1992 CITY ATg 011EME 'd OFFICE FEES COSTS CREDITS 1,212.50 50.62 0.00 0.00 7.21 0.00 TOTAL 1,263.12 7.21 • LAW OFFI9 OF JOHN D. MUSICK, JR. & A&CIATES • P.O. Box 479 • Boulder, Colorado (�i 7�7� elephone (303) 447 -1974 AGE 2 Admitted in California, Colorado, Hawaii, Illinois, ew'York, Wyoming and District of Columbia O SHUNY OF�C[�RRENT BILLG' California FEES COSTS CREDITS TOTAL ASPEN -39 0.00 3.31 0.00 3.31 CCDA (PO 101174) ASPEN.01 25.00 0.00 0.00 25.00 AP -01 General Legal (PO 100537) TOTALS 1,237.50 61.14 0.00 1,298.64 PREVIOUS BALANCE 6,771.86 PYMTS /ADJUSTMENTS — 6,771.86 CURRENT BILLING 1,298.64 NEW BALANCE 1,298.64 • LAW OFFI(S OF JOHN D. MUSICK, JR. & A&CIATES • P.O. Box 9 • Boulder, Colorado 803064579 • Telephone (303) 447 -1974 Admitted in California, Colorado, Hawaii, Illinois, New York, Wyoming and District of Columbia Offices in Aspen and Boulder, Colorado and Los Angeles, California 08/31/92 Edward M. Caswall, Esq. City Attorney City of Aspen 130 South Galena Street Aspen, CO 81611 OUR FILE: ASPEN -01 General Legal (PO 100537) Professional Services Rendered: 08/03/92 MMM Phonecon w /B. Noone on final Stipulation 0.25 25.00 [BWCD] 08/04/92 RAB Letter to Jed Caswall 0.25 25.00 08/04/92 MMM Review and revise letter to J.C. on 0.25 25.00 augmentation issue 08/10/92 RAB Letter to Jed 0.25 25.00 08/10/92 MMM Review Caswall letter; Review MCDC file; 1.00 100.00 Phonecon w /K. Holleyman on case status 08/13/92 RAB Review letter from Jed; Conference w /MMM 0.25 25.00 08/14/92 RAB Review Rio Grande Stipulation 0.25 25.00 08/14/92 MMM Review denial of well application 0.25 25.00 08/17/92 RAB Rio Grande Stipulation 1.00 100.00 08/18/92 JDM Letter to JC re MCDC cases 0.25 43.75 08/19/92 JDM Review draft letter to JC 0.25 43.75 08/19/92 MMM Review and revise MCDC letter 0.25 25.00 08/21/92 MMM Review letter and opinion 0.25 25.00 08/24/92 MMM Phonecon w /AG's office on settlement 0.25 25.00 08/24/92 MMM Update notes for use in negotiations 3.00 300.00 w /SEO, AG's office, ACES and Aspen Ski Company to resolve all parties issues 08/25/92 MMM Review Aspen Water Rights file for 1.50 150.00 identity of holder of Well Permit 7753 -F; Phonecon w /SEO and L. Ballenger on ownership; Revise memorandum; Prepare possible stipulations to cover other parties concerns in above • LAW OFFIM OF JOHN D. MUSICK, JR. & A&CIAM • 08/31/92 P.O. Box 'W9 • Boulder, Colorado 80306 -4579 • Telephone (303) 447 -1974 PAGE 2 Admitted in California, Colorado, Hawaii, Illinois, New York, Wyoming and District of Columbia Offices in Aspen and Boulder, Colorado and Los Angeles, California FILE ASPEN -01 RAB Letter to Jed 0.25 General Legal (PO 100537) RAB Letter to Jed re billing 08/26/92 MMM Phonecon w /SEO for well permit 1.00 100.00 Review letters and stipulations information; Phonecon w /L. Ballenger; NC 08/17/92 JSC Calls to existing laundries in Aspen; 0.75 NC 08/17/92 Phonecon w /Records Department; Well Continue review of Rio Grande Drain 0.50 NC Permit owner identified Stipulation 08/26/92 MMM Phonecon w /well owner, referred to K. 0.25 25.00 Stipulation; Conference w /MMM Patrick NC 08/18/92 08/26/92 MMM Obtain blank well waiver form 0.25 25.00 08/27/92 RAB Phonecon w /Cindy Covell; Conferene w /MMM 0.25 25.00 08/28/92 MMM Read K. Patrick's Objection to 0.25 25.00 0.25 Stipulation 08/19/92 MMM 08/28/92 MMM Letter to Jed Caswall 0.25 25.00 MMM TOTAL HOURS 11.75 NC TOTAL FEES revision 1,212.50 Expenses: MMM Final revisions to MCDC letter 08/31/92 Photocopy Expenses 08/27/92 14.40 08/31/92 Postage Expenses NC 6.37 08/31/92 Telephone Expenses 28.34 08/31/92 Fascimile Transmission Expense application 1.51 TOTAL COSTS 50.62 Non - Chargeable Services: 08/03/92 RAB Letter to Jed 0.25 NC 08/17/92 RAB Letter to Jed re billing 0.50 NC 08/17/92 JDM Review letters and stipulations 0.25 NC 08/17/92 JSC Review Rio Grande Drain Stipulation 0.75 NC 08/17/92 JSC Continue review of Rio Grande Drain 0.50 NC Stipulation 08/18/92 RAB Stipulation; Conference w /MMM 0.25 NC 08/18/92 MMM Review options w /RAB on proceeding 0.25 NC 08/18/92 MMM Search for budget letter and MCDC letter 0.25 NC 08/19/92 RAB Review JDM's letter 0.25 NC 08/19/92 MMM Review letter to Jed Caswall on MCDC 0.25 NC 08/24/92 MMM Review letter to Caswall for accuracy of 0.25 NC revision 08/25/92 MMM Final revisions to MCDC letter 0.25 NC 08/27/92 MMM Phonecon w /Pitkin County Attorney office 0.25 NC on possible opposition to diligence application • LAW OFFI(• OF JOHN D. MUSICK, JR. & A&CIATES • 08/31/92 P.O. Box 4579 • Boulder, Colorado 80306-4579 • Telephone (303) 447 -1974 PAGE 3 Admitted in California, Colorado, Hawaii, Illinois, New York, Wyoming and District of Columbia FILE ASPEN -01 Offices in Aspen and Boulder, Colorado and Los Angeles, California General Legal (PO 100537) 08/28/92 RAB Phonecon w /Cindy Covell 0.25 NC 08/28/92 JDM Review document re SO in TWLKS case 0.25 NC TOTAL NO- CHARGE 4.75 0.00 SUMMARY OF FEES HOURS R A Brammer 2.25 J D MUSICK 0.50 M M MC CANN 9.00 TOTAL 11.75 TO' RATE AMOUNT 100.00 225.00 175.00 87.50 100.00 900.00 1,212.50 rAL DUE THIS BILL: 1,263.12 LAST BILL: 07/31/92 PREVIOUS BALANCE 2,866.61 08/28/92 PAYMENT RECEIVED - THANK YOU - 1,230.49 08/10/92 PAYMENT RECEIVED - THANK YOU - 1,636.12 TOTAL DUE THIS BILL: 1,263.12 NEW BALANCE 1,263.12 -------------------------------------------------- -------------------------------------------------- • LAW OFFI OF JOHN D. MUSICK, JR. & A&CIATES • P.O. Box 79 • Boulder, Colorado 80306 -4579 • Telephone (303) 447 -1974 Admitted in California, Colorado, Hawaii, Illinois, New York, Wyoming and District of Columbia Offices in Aspen and Boulder, Colorado and Los Angeles, California 08/31/92 Edward M. Caswall, Esq. City Attorney City of Aspen 130 South Galena Street Aspen, CO 81611 OUR FILE: ASPEN -02 Misc Annex /Wtr Ext /Agree (PO 100537) Expenses: 08/31/92 Photocopy Expenses 6.00 08/31/92 Postage Expenses 1.21 TOTAL COSTS 7.21 TOTAL DUE THIS BILL: 7.21 LAST BILL: 07/31/92 PREVIOUS BALANCE 7.78 08/10/92 PAYMENT RECEIVED - THANK YOU -7.78 TOTAL DUE THIS BILL: 7.21 NEW BALANCE 7.21 -------------------------------------------------- -------------------------------------------------- • LAW OFFI OF JOHN D. MUSICK, JR. & A&CIATES • P.O. Box 9 • Boulder, Colorado 803064579 • Telephone (303) 447 -1974 Admitted in California, Colorado, Hawaii, Illinois, New York, Wyoming and District of Columbia Offices in Aspen and Boulder, Colorado and Los Angeles, California 08/31/92 Edward M. Caswall, Esq. City Attorney City of Aspen 130 South Galena Street Aspen, CO 81611 OUR FILE: ASPEN -17 Aspen Wtr Mgt Pln /Cap Wtr Proj(PO100930) LAST BILL: 07/31/92 PREVIOUS BALANCE 325.00 08/10/92 PAYMENT RECEIVED - THANK YOU - 325.00 NEW BALANCE 0.00 • LAW OFFI& OF JOHN D. MUSICK, JR. & APCIATES • P.O. Box • Boulder, Colorado 80306 -4579 • Telephone (303) 7 -1974 Admitted in California, Colorado, Hawaii, Illinois, New York, Wyoming and District of Columbia Offices in Aspen and Boulder, Colorado and Los Angeles, California 08/31/92 Edward M. Caswall, Esq. City Attorney City of Aspen 130 South Galena Street Aspen, CO 81611 OUR FILE: ASPEN -39 CCDA (PO 101174) Expenses: 08/31/92 Photocopy Expenses 0.40 08/31/92 Postage Expenses 0.29 08/31/92 Fascimile Transmission Expense 2.62 TOTAL COSTS 3.31 Non - Chargeable Services: 08/03/92 RAB Phonecon w /Dean Gordon; Phonecon w /Carol 0.75 NC Hood; Phonecon w /Bill Tofany 08/04/92 RAB Phonecon w /Carol Hood and Bill Toufany; 1.00 NC Conference w /MMM 08/10/92 RAB Review letter from Jed and Cindy 0.50 NC 08/10/92 MMM Review case status and determine 0.50 NC materials to be sent to water referee 08/12/92 RAB Phonecon w /Cindy Covell 0.25 NC 08/12/92 RAB Conference w /MMM 0.25 NC 08/12/92 MMM Update from RAB on case settlement 0.25 NC 08/17/92 RAB Letter to Jed; Review Cindy's letter 0.25 NC 08/17/92 JDM Review letter to Jed 0.25 NC 08/18/92 MMM Review Covell letter on settlement 0.25 NC 08/19/92 RAB Phonecon w /Jed 0.25 NC 08/20/92 RAB Letter to Ray Walker 0.50 NC 08/20/92 MMM Revise letter seeking discovery 0.25 NC. extension • LAW OFFI(S OF JOHN D. MUSICK, JR. & CIATES • 08/31/92 P.O. Box • Boulder, Colorado 803064579 • Telephone (303)'W-1974 PAGE 2 Admitted in California, Colorado, Hawaii, Illinois, New York, Wyoming and District of Columbia FILE ASPEN -39 Offices in Aspen and Boulder, Colorado and Los Angeles, California CCDA (PO 101174) 08/21/92 MMM Phonecon w /Division 5 Water Referee 0.25 NC 08/22/92 MMM Letter to Walker confirming Friday 0.25 NC extension grant 08/24/92 MMM Final revisions to letter requesting 0.25 NC extension 08/28/92 MMM Review terms of time extension from 0.25 NC Referee TOTAL NO- CHARGE 6.25 0.00 TOTAL DUE THIS BILL: 3.31 LAST BILL: 07/31/92 PREVIOUS BALANCE 2,657.14 08/28/92 PAYMENT RECEIVED - THANK YOU -3.29 08/10/92 PAYMENT RECEIVED - THANK YOU - 2,653.85 TOTAL DUE THIS BILL: 3.31 NEW BALANCE 3.31 • LAW OFFI(S OF JOHN D. MUSICK, JR. & A CIATES • P.O. Box a19 • Boulder, Colorado 803064579 0 Telephone (303) -1974 Admitted in California, Colorado, Hawaii, Illinois, New York, Wyoming and District of Columbia Offices in Aspen and Boulder, Colorado and Los Angeles, California 08/31/92 Edward M. Caswall, Esq. City Attorney City of Aspen 130 South Galena Street Aspen, CO 81611 OUR FILE: ASPEN.01 AP -01 General Legal (PO 100537) Professional Services Rendered: 08/11/92 RAB Review file for information for case 0.25 25.00 TOTAL HOURS 0.25 TOTAL FEES 25.00 Non - Chargeable Services: 08/25/92 RAB Review file 1.25 NC 08/27/92 MMM Prepare file for transmittal to Jed 0.75 NC Caswall 08/28/92 MMM Copied MCDC file and sent to Caswall, 0.25 NC TOTAL NO- CHARGE 2.25 0.00 SUMMARY OF FEES HOURS RATE AMOUNT R A Brammer 0.25 100.00 25.00 TOTAL 0.25 25.00 TOTAL DUE THIS BILL: 25.00 LAST BILL: 07/31/92 PREVIOUS BALANCE 915.33 08/28/92 PAYMENT RECEIVED — THANK YOU — 650.41 08/10/92 PAYMENT RECEIVED — THANK YOU — 264.92 TOTAL DUE THIS BILL: 25.00 NEW BALANCE 25.00 vcx s w ASPEN MOUNTAIN PUD —LODGE PRELI !+II NARY PUD /SUBDIVISION Index 1. John Doremus's April 8, 1984 letter to the Planning Office re: Preliminary PUD Review procedures. 2. John Doremus's August 2, 1984 letter to the Planning Office re: Need to Phase the Preliminary PUD application of the Lodge portion of the Aspen Mountain Lodge. 3. Paul Taddune's comments with respect to John Doremus's August 2, 1984 correspondence. 4. John Doremus's August 21, 1984 addendum to his August 2, 1984 letter re: Proposed Lodge Construction Scheduling. 5. Planning Office's August 27, 1984 memo to City Council re: Aspen Mountain PUD Request Phase Preliminary PUD application. 6. City Council August 27, 1984 minutes reflecting Council approval to stage Aspen Mountain PUD Preliminary Review. 7. City Council's September 24, 1984 minutes clarifying PUD procedural requirements. 8. Paul Taddune's October 5, 1984 memorandum to City Council re: Donation of Koch Lumber Property. 9. Planning Office's October 11, 1984 memo referring Aspen Mountain Lodge Preliminary GMP /subdivision submission. 10. Planning Office's October 16, 1984 Certificate of Mailing and Notice of Public Hearing re: Aspen Mountain Lodge Preliminary PUD /subdivision submission. 11. Conceptual notes written by Sunny Vann. 12. Aspen Mountain PUD Floor Area and Floor Area Ratio Analysis of April 10, 1984. 13. Thomas Dunlop's September 11, 1984 letter to Doug Graybeal re: Carbon Monoxide Removal System. 14. Record of Proceedings of Planning and Zoning Commission's regular meeting of October 2, 1984. 15. Heiko Kuhn's response to October 11, 1984 memorandum from Alan Richman on Aspen Mountain Lodge Preliminary GMP /Subdivision. 16. Jim Markalunas's October 22, 1984 memorandum to Alan Richman re: Comments on Water improvements on Aspen Mountain Lodge. 17. Paul Taddune's November 5, 1984 memorandum to Planning Director re: Cantrup Bankruptcy. 18. Thomas Dunlop's November 6, 1984 memorandum to Sunny Vann re: Environmental Health's comments on Aspen Mountain Lodge Preliminary GMP /Subdivision. 19. Jay Hammond's November 6, 1984 memorandum to Alan Richman re: Aspen Mountain Lodge Preliminary Subdivision and PUD. 20. Bill Drueding's November 6, 1984 memorandum to Alan Richman re: Aspen Mountain Lodge Preliminary GMP /Subdivision. 21. Jim Wilson's November 7, 1984 memorandum to Alan Richman re: Comments of Fire; Life and Safety nature on Aspen Mountain Lodge. 22. Sunny .Vann' s November 13, 1984 memorandum to Alan Richman re: Aspen Mountain Lodge Preliminary PUD /Subdivision application. - -.1_ j 23. Jim Holland's November 15, 1984 memorandum to Planning Department re: Review Comments on the Aspen Lodge. 24. P &Z Presentation notes on November 20, 1984 by Alan Richman. 25. Alan Richman's November 20, 1984 memorandum to Aspen Planning and Zoning Commission re: Aspen Mountain Lodge Preliminary PUD /sub- division, Condominiumization, Viewplane - Public Hearing. 26. Continental Inn Renovation Plan. 27. Jim Curtis's November 23, 1984 letter to Alan Richman re: Aspen Mountain Lodge PUD Replacement of Displaced Employee Housing. 28. Alan Richman's November 27, 1984 memorandum to Aspen Planning and Zoning Commission re: Schedule for Review of Lodge Component of Aspen Mountain PUD. 29. James Ripley's November 27, 1984 memorandum to Jim Holland re: Review Comments - Aspen Lodge. 30. Joe Well's December 1, 1984 letter to Alan Richman re: Revised submittal GMP submission for 700 South Galena /Hotel West Wing residential units. 31. Comparative Table Original PUD and Phased Program. 32. Alan Richman's December 3, 1984 memorandum to Aspen Planning and Zoning Commission re: Phasing Comparison. 33. Application for Exception from Subdivision Regulations of December 11, 1984. 34. P &Z Presentation Notes of December 11, 1984 by Alan Richman. 35. Charles Brandt' s December 14, 1984 letter to Alan Richman re: Aspen Mountain Lodge Condominiumization Section 20 -23 (A)(6)(C), Aspen Municipal Code. 36. P &Z Meeting Notes of December 18, 1984 by Alan Richman. 37. Alan Richman's December 18, 1984 memorandum to Aspen Planning and Zoning Commission re: Aspen Mountain Lodge Preliminary PUD - Continued Public Hearing. 38. Alan Richman's January 8, 1985 memorandum to Aspen Planning and Zoning Commission re: Aspen Mountain Lodge - Completion of Review of Issues. 39. Aspen Mountain Lodge Review of January 8, 1985 by Alan Richman. 40. Charles Brandt's January 14, 1985 letter to Alan Richman re: Aspen Mountain Lodge - 1978 Aspen Inn_ Expansion Employee Housing Requirement. E DENVER OFFICE SUITE 2900 555 SEVENTEENTH STREET DENVE R, COLORADO 80202 TELEPHO N E(303) 295 -8000 TELECOPIER(303)295 -8261 MONTANA OFFICE SUITE 1400 175 NORTH 27TH STREET BILLINGS, MONTANA 59101 TELEPHONE (406) 252-2165 TELECOPIER (406) 252 -1669 CHARLES T. BRANDT HAND DELIVERY HOLLAND & HART ATTORNEYS AT LAW 600 EAST MAIN STREET ASPEN, COLORADO 81611 TELEPHONE (303) 925 -3476 January 14, 1985 11 WASHINGTON, D. C. OFFICE SUITE 1200 1875 EYE STREET, N. W. WASHINGTON, D. C. 20006 TELEPHONE (2'02)466-7340 TELECOPIER (202)466-7354 WYOMING OFFICE SUITE 500 2020 CAREY AVENUE CHEYENNE,WYOM I NG 82001 TELEPHONE (307) 632 -2160 TELECOPIER (307) 778 -8175 S. E.DENVER OFFICE SUITE 1250 7887 EAST BELLEVIEW AVENUE ENGLEWOOD, COLORADO 80111 TELEPHONE (303) 741-1226 Alan Richman v Acting Planning Director A? 1 5 i 130 So. Galena St. Aspen, Colorado 81611 Re: Aspen Mountain Lodge - 1978 Aspen Inn Expansion Employee Housing Requirement Dear Alan: D This letter will put forth our client's position with respect to the referenced. issue. The question is whether Commerce must provide 24 employee units housing 35 employees as committed by Hans Cantrup in his 1978 Aspen Inn Expansion GMP application for the 36 free - market lodge units; or, may Commerce provide housing for 100% of the employees generated by the 36 lodge units, which amounts to a commitment to house 13 employees. First, let us recap what has happened to date. On page 10 of the 1983 Lodge GMP Submission on The Aspen Moun- tain Lodge, it is stated that "this Submission includes a request for three forms of approval for the 480 unit lodge which relate to the Lodge GMP regulation in the following manner;" Number 2 states: "Approval of an amendment to the 1978 Lodge GMP Submission for an addition to the Aspen Inn which received an allotment for 36 lodge units. It is our intention to demolish the building which is presently under construc- tion and rebuild the 36 units as a part of the 480 unit proposal." In Resolution No. 84 -11 (series of 1984) granting a multi -year Lodge GMP allocation to the Aspen Mountain Lodge and conceptual PUD /Subdivision approval the following recital appears: ap • • HOLLAND & HART Alan Richman January 14, 1985 Page 2 "Whereas, an additional forty -two (42) (including the 36 units of the Aspen Inn Exten- sion) lodge units are eligible for verification pending the settlement of outstanding litiga- tion between the Cantrup Estate and the City of Aspen" Pursuant to this portion of Council's resolution, a formal written agreement settling three Aspen Inn lawsuits has been prepared by the City Attorney acknowledging that the 36 units awarded to Cantrup are fully valid and effective. Such agreement is contin- gent, of course, upon approval of the bankruptcy court and final Council approval of the Aspen Moutain Lodge PUD. In Resolution 84 -27, City Council endorsed the revised employee housing proposal of the Aspen Mountain PUD on condition that the applicant submit "additional documentation with respect to the replacement of existing employee housing as required by Sec- tions 20 -22 and 20 -23. Next, let's examine the Code requirements relating to so- called "displaced" employee housing. Section 20 -22(c) requires that the applicant shall demonstrate that approval will not reduce the supply of low and moderate income housing. The criteria includes evidence that there will be minimal tenant displacement as a result of the conversion. Section 20- 23(A)(2) requires a minimum of "two (2) pillows of employee housing or that amount of employee housing that has been provided for three (3) years previous to the time of condominiumization, whichever is greater ". Clearly the foregoing criteria does not apply since there has been no employee housing provided or associated with the 36 unit Aspen Inn Exten- sion. We believe the criteria which should apply is.36 employees per unit which is the figure approved by the Housing Authority in its review of the Aspen Mountain Lodge GMP and PUD submission. It equates to. housing 100% of the employees generated by the develop- ment of the new units in the Aspen Mountain Lodge. Commerce pro- poses to utilize this as the standard and to provide housing for 13 employers in connection with the redevelopment of the 36 unit Aspen Inn Extension. This amounts to a commitment to house 100% of the employees generated by the 36 lodge units. As part of the Lodge Preliminary PUD and Subdivision Submis- sion, and as one of the amendments proposed by the applicant to the 1978 GMP application as set forth in Jim Curtis' letter dated November 23, 1984, Commerce has committed to house 100% of the r 0 • HOLLAND & HART Alan Richman January 14, 1985 Page 3 employees generated by the 36 lodge units of the 1978 Aspen Inn expansion application, or 13 employees. We trust that given the fact that Commerce is housing 100% of the employees generated by the units resulting in no impacts to the community, that Mr. Cantrup's employee units associated with the Aspen Inn Expansion were never constructed, and that Commerce's employee housing will be of superior quality than that historically provided by Mr. Cantrup, you will recommend approval of this amend- ment to the 1978 GMP application to the Planning Commission. Very truly yours,, CC/har T. Brandt for HOLLAND & HART CTB /fm cc: Members, Planning Commission Jim Curtis Alan Novak Ella S. Neyland James M. Holbrook, Esq. Robert Feldman, Esq. Paul Taddune, Esq. U • ��M � • RCN \ ��W � � � . f � � O W w2.f.. S�. ,� .. v, Q � � - -•_.7� Q> 0 � p w � =-- Q,,,c,� ti� U .-. �'j Y � � 9 npo S use. A 0 MEMORANDUM TO: Aspen Planning and Zoning Commission FROM: Alan Richman, Planning Office RE: Aspen Mountain Lodge - Completion of Review of Issues DATE: January 8, 1985 Please bring to the January 8th meeting, your November 20 and December 18 Planning Office memos regarding the Aspen Mountain Lodge.. MEMORANDUM TO: Aspen Planning and Zoning Commission FROM: Alan Richman, Planning Office RE: Aspen Mountain Lodge Preliminary PUD - Continued Public Hearing DATE: December 18, 1984 INTRODUCTION The purpose of this memo is to provide you with a synopsis of the work we have accomplished in our four meetings with respect to the Aspen Mountain Lodge Preliminary PUD. I have organized this discussion in terms of significant topical areas as an aid toward developing specific conditions for your resolution granting Preliminary PUD approval. ARCHITECTURE AND DESIGN At our first meeting on November 20, we explored various aspects of the project's architecture and site design. We first discussed Council's desire to have architectural variation throughout the lodge buildings. You concluded that since this is a PUD, it is reasonable to expect a common, unified theme throughout the project, and that the separation of the project into a number of buildings has created much of the desired variation. Furthermore, by leaving the Continental in place for at least five (5) years we insure that the project will have differing styles for the time being. The one condition which emerged from this discussion was our need to see as much detail as possible on materials and colors to help us to under- stand better the variation which the applicants have put into the build- ings. We also reviewed the FAR of the PUD on November 20 and .concluded that approximately 25,000 square feet of external area around the perimeter of the lodge will count against the approved FAR for the building, thereby exceeding the limit imposed by Council. The covered areas include the port cocheres, the colonnade between the chateaus and the parking ramp to the underground garage. You generally felt that these covered areas did not add to the bulk of the building (and in certain cases actually reduced the perceived bulk), did serve an important function in handling the guests to the hotel and should be retained in the design. One condition which resulted from this discussion was your desire to prevent the applicants from ever pushing the inverted mass of the build- ing out into the sidewalk in the area-of the commercial units. It was felt that this limitation would effectively negate the fact that we count this area in the FAR by insuring that it is never used as commer- cial space. The final issue discussed at our meeting on November 20 was the height of the building. The applicants represented that the building had been slightly redesigned to comply with Council's 42 and 55 foot limitations. We should be sure to require that the applicants revise their preliminary and final PUD drawings to illustrate this commitment. TRANSPORTATION Throughout our discussion we have touched upon a variety of transporta- tion issues. Probably the issue which has created the greatest problem is parking. The applicants propose to have the following off - street parking spaces available as part of Phase 1A: Below West Wing 211 (192 for lodge, 19 for residential) Surface East Wing 54 Below East Wing 28 TOTAL 293 The proposed 293 spaces are 60 less than were committed to at the con- ceptual stage. However, in a meeting with John Doremus yesterday, I was shown as revised plan which would add 72 more spaces as follows: Subsurface East Wing 42 Surface East Wing 22 (Intrudes into about 65 feet of the Park) Added surface, West Wing 1 Added surface, Port Cocheres 7 We�recorhmend ..-that'f.ollowing:_:your review of the revised design, you approve this revised proposal for 365 spaces. A second transportation question concerned the vacation of Dean Street. The applicants indicated to you that they had changed their minds and now wished to close the street to vehicular traffic other than circula- tion to the port cocheres, thereby creating a nearly exclusive pedestrian zone. Several issues resulted from this proposal, including the type of signage and /or management techniques to enforce the street's closure. I believe that you should require the applicants to clarify how they intend to handle this situation. We also discussed the needs of service vehicles, particularly to the Chart House, as they would be affected by the closure. We agreed that a message should be transmitted to the City's streets and engineering departments to provide better maintenance of the roads west of the project through snow removal and parking limits to insure adequate circulation in the remaining public streets. A third transportation problem had to do with the movement of pedestrians from the two lodge wings to Rubey Park. You were concerned that pedes- trian traffic did not appear to be channeled to the street corners and that the result would be a dangerous situation on Durant Street. The applicants provided you with a drawing which revised the design of the plaza in front of the Continental and obtained the desired channeliza- tion. You should require the applicants to incorporate these changes into their revised preliminary and final PUD drawings. Other transportation issues which were discussed, but not resolved, in- cluded the adequacy of the proposed Summit Street right -of -way (to be resolved as part of the residential project review) and the adequacy of the service vehicle access to the lodge. Finally, you concurred with the applicants' clarification of the commitments in support of the vaca- tion and easement requests, and their traffic circulation improvement clarifications (both vehicular and pedestrian). PHASING Our discussion of the project's proposed phasing schedule covered both policy and technical concerns. At your recent meeting on December 11, you appeared to support the concept of phasing for the following reasons: 1. The first phase will upgrade the most seriously substandard portion of the project, the West Wing. 2. The phasing program should result in lessened construction impacts upon the community. 3. The phasing allows the applicants to evaluate the community's ability to absorb 285 "top end" lodge units into the market. If demand for these units does not exceed supply, then the additional units should never have been built in the first place, and the Continental can continue to serve its own share of the market. 4. The downside result of phasing is an acceptable risk to the community. We still achieve a new West Wing, a refurbished Continential Inn, a new park on Durant Avenue and a generally upgraded area. Part of your confidence in the phasing program came from our review of ten specific project amenities as originally represented and as revised - 2 - in the phased program. The only major problem identified in the phased approach was parking, addressed above. Concerns were also raised about the undergrounding of utilities, to be discussed in detail below. One trade -off in the phasing program is that instead of getting an ice rink and two chalets along Durant Street, we are instead provided with a full block park in front of the Continential Inn. We see the park as a very positive amenity in the area, particularly given the applicants' representation that the mature trees which are to be removed elsewhere on the lodge construction site will be relocated to the park. If the park is ever removed, due to construction of the East Wing, the appli- cants are prepared to again relocate the trees elsewhere on the site. The new commitments by the applicants with respect to the landscape plan should be made a condition of approval of Preliminary PUD. Several phasing issues have not been resolved at this time. As of yet, we have no final definition of the employee housing needs for the pro- ject's first phase as compared to the whole project. This issue is intended to be resolved during the residential project review. We also have no firm plans for the upgrade of the Continental. The applicants must provide drawings demonstrating that no more than 162 units will remain in the Continental after it is refurbished so that the 447 unit allocation is not violated. The drawings should demonstrate the future use of the rooms which are being abandoned, and the plans for the ex- terior of the building. The applicant has asked you to consider allowing the Continental to drop to 150 units by having an additional 12 units relocated tot:the West Wing. We see no basic problem with this request, if the proper drawings are submitted as part of final plat, demonstrating that the footprint of the West Wing has not grown as a result of this request. We spent considerable time discussing the construction schedule for Phase lA of the project. The applicants presented a thorough, well con- ceived schedule which is very tight if the applicants objectives are to be achieved in a timely fashion. One issue which still must be resolved is the provision of a staging area for construction materials and support services. You also wanted the applicant to provide us with a bond to insure that once the streets in the area are torn up, you could guarantee their reconstruction as needed. It was also suggested that we require the structural steel to be delivered prior to the winter season and that locations for dumping excess excavation /demolition materials be identified by the applicants. As a catch -all, we should require the applicants to continue to work with the City Engineer regarding the schedule and City coordination of services in the area. One last phasing question relates to Council's agreement to review the residential and lodge submission in stages. Your action on the prelimi- nary.PUD should recognize that the approval of the lodge stage does not become effective until the preliminary review of the entire PUD has been approved. TTTTT.TTTFS Our discussion of utilities demonstrated that the applicants continue to commit to improving the overall quality of service to their neighbor- hood. Water and sewer commitments remain unchanged. The applicants have clarified their fire protection program and these new commitments should be made part of our resolution. A drainage solution is not now available, and is dependent upon the applicants completion of a study of flows from Aspen Mountain and the development of an adequate design for both the residential and lodge components of the PUD. We should re- cognize the need to-finalize the drainage solution for the lodge within the residential component of the PUD. A final utility question is the extent to which the utilities in the area will be placed underground in the first phase of the project. The applicant represented that all proposed undergrounding will take place, with the possible exception of the East block of Dean Street. The applicants should be required to firmly commit to an undergrounding plan in conjunction with submission of a final plat to City Council. - 3 - 0 • MISCELLANEOUS ISSUES Our review agencies have identified a variety of technical questions which should be addressed as conditions of your approval. Of particular importance are the comments by Jay Hammond, Tom Dunlop, Jim Holland and Jim Wilson. Your review of the Wheeler Viewplane issue resulted in no particular conditions of approval. However, your ongoing review of the hotel and residential condominiumization will result.in some conditions being imposed. You.were concerned about the rental management of the condo - miniumized hotel units being accomplished by no more than two entities, one for each wing of the PUD. You also raised the question of whether; the amenities of the project would be freely available to its guests, possibly by keeping their ownership in the association. For your informa- tion, on page 16 of the By- laws - -the applicants commit to charging no fees for the use of the swimming pools, spas, health center and ice rink. I believe that this commitment should satisfy your concerns relative to this issue. Finally, your completion of the residential condominiumiza- tion review tonight will probably add other conditions to your action. Although we have not yet addressed the GMP amendment request for 700 S. Galena, our review of the lodge itself makes it clear that the project will have to be scored once again to reflect its new design and phasing program. The applicant should be required to submit such an amendment prior to receipt of a building permit (presumably after an operator has been chosen so the amendment can.reflect final program details). CONCLUSION We have identified a large number of issues which need to be addressed in your resolution regarding the lodge preliminary PUD. Following your completion of the technical review tonight, I should have adequate gui- dance to develop a draft resolution. The actual work will be quite tedious and time - consuming. Given the fact that we are moving into the holiday season and we have not scheduled any additional meetings on this project, I need your direction as to when you want to meet to review the draft. Hopefully, that added meeting will allow you to conclude your work on the lodge Preliminary PUD. - 4 - 1 � �Q /`��1 � ��C�� JA-- 0 l n ( r r \—C.\ , A-C-LeSS IJ.F , 0� �.S � SQ -�s� -- • X10 9 5. 6�..,� 1-�v o � � �\ � S IiI _ 1 Cc, /tQtO_ �•,�,,wan�Q oP�. "` p` 1 k (( ( Co K •� pr\�.O wy Usk --Lo 000 O o ^ k nn Fea s - O ��� '-' S \n��&-�2_ B �` Cis -� o� (� ,.J�- � •�+¢_7�'� - ww.,.tn.w (( ( Co K •� pr\�.O wy Usk --Lo 000 O o ^ k nn Fea s - O HAND DELIVERED Alan Richman Acting Planning Director 130 South Galena St. Aspen, Colorado 81611 Re: Aspen Mountain Lodge Condominium p �6ao DEC, I niz "at ion - Section 20- 23(A)(6)(c), Aspen Municipal Code Dear Alan: This letter will put forth our client's position with respect to the requirement under the referenced section that Commerce Sav- ings execute a promissory note payable to the City secured by a trust deed encumbering the lodge property. Such a note would be approximately $50,000,000. The promissory note and trust deed requirement, in the words of the referenced section, is "to assure that the physical upgrading of the lodge facility required by this section is accomplished..." Phase 1 of the Aspen Mountain Lodge is not an "upgrade" of an existing facility but an entirely new facility. From a reading of Section 20 -23, it becomes clear that the ordi- nance speaks to existing lodges which are being condominiumized and in the process certain improvements and amenities are being pro- vided. This is not the case with the Aspen Mountain Lodge. The existing facilities are being removed and a new facility is being constructed. Secondly, the right to subordinate the City's deed of trust securing the promissory note does not work for this project. It will be necessary, unless the public offering route is pursued suc- cessfully, for the developer to borrow the funds needed to build the hotel. Such funds will be secured.by a deed of trust which will be required by the lender to be in a first lien position against the phase one land. Thus, if the subordination provisions HOLLAND & HART DENVER OFFICE WASHINGTON, D. C. OFFICE SUITE 2900 ATTORNEYS AT LAW SUITE 1200 555 SEVENTEENTH STREET 1875 EYE STREET, N. W. DENVER, C OLORADO 80202 600 EAST MAIN STREET WASHINGTON, D. C. 20006 TELEPHONE (303) 295 -8000 TELEPHONE (202) 466-7340 TELEC OPIER (303) 295-8261 ASPEN, COLORADO 81611 TELECOPIER (202) 466 -7354 TELEPHONE (303) 925-3476 MONTANA OFFICE WYOMING OFFICE SUITE 1400 SUITE 500 175 NORTH 27TH STREET 2020 CAREY AVENUE BILLINGS, MONTANA 59101 CHEYENNE, WYOMING 82001 TELEPHONE(406) 252 -2166 TELEPHONE (307) 632 -2160 TELECOPIER (406) 252 -1669 TELECOPIER (307) 778 -8175 CHARLES T. BRANDT December 14, 1984 S. E.DENVER OFFICE SUITE 1250 7887 EAST BELLEVIEW AVENUE ENGLEWOOD, COLORADO 80111 TELEPHONE (303) 741 -1226 HAND DELIVERED Alan Richman Acting Planning Director 130 South Galena St. Aspen, Colorado 81611 Re: Aspen Mountain Lodge Condominium p �6ao DEC, I niz "at ion - Section 20- 23(A)(6)(c), Aspen Municipal Code Dear Alan: This letter will put forth our client's position with respect to the requirement under the referenced section that Commerce Sav- ings execute a promissory note payable to the City secured by a trust deed encumbering the lodge property. Such a note would be approximately $50,000,000. The promissory note and trust deed requirement, in the words of the referenced section, is "to assure that the physical upgrading of the lodge facility required by this section is accomplished..." Phase 1 of the Aspen Mountain Lodge is not an "upgrade" of an existing facility but an entirely new facility. From a reading of Section 20 -23, it becomes clear that the ordi- nance speaks to existing lodges which are being condominiumized and in the process certain improvements and amenities are being pro- vided. This is not the case with the Aspen Mountain Lodge. The existing facilities are being removed and a new facility is being constructed. Secondly, the right to subordinate the City's deed of trust securing the promissory note does not work for this project. It will be necessary, unless the public offering route is pursued suc- cessfully, for the developer to borrow the funds needed to build the hotel. Such funds will be secured.by a deed of trust which will be required by the lender to be in a first lien position against the phase one land. Thus, if the subordination provisions or 0 Alan Richman December 14, 1984 Page 2 HOLLAND & HART of this Section are applied, Commerce would have $100,000,000 in notes against the property, $50,000,000 to its construction lender and $50,000,000 to the City. Yet this violates the requirement in Section 20- 23(A)(6)(c) which states that the combined obligations may not "exceed the fair market value of the lodge property and its improvements at the time the application is approved ". The value of the lodge property is considerably less than $100,000,000. Clearly this is an unworkable provision under the circumstances. You and I thought the "Hotel Lenado alternative" offered a solution. The problem with agreeing that the City withhold final condominium approval until the hotel is completed, as in the Hotel Lenado case, is that such a provision may preclude an effective registered offering if this route is pursued by Commerce. If we weren't condominiumizing the new hotel, this section would not apply. Nor would it apply if Commerce was in fact upgrading the existing lodges and not seeking condominium approval (as in the case with the Hotel Jerome). Thus, it is difficult to see the logic of its application of this case and given the unworkability of the subordination provision, we request that this provision be determined by the planning office to be inapplicable. Thank you. CTB /fm cc: John Doremus Alan Novak Ella Neyland James M. Holbrook, Esq. Robert Feldman Paul Taddune, Esq. Very truly yours, Charles T. Brandt for HOLLAND & HART r W o � �.�,�C.� 'tom S.� -e.._ �-a � �A �. � •� \ � � ,,,7� -� � a ..� p F `,p ,�..i � .¢-7C h-t L - � \\,�..p,.� �Q O k. f� 'k- �-Q�t �l h \ � ♦ ti C.K \'A � �-O -� 'cv �. � c-v. � • "� \ y ITO. II �w� t \A� \Oh �F O VfJ� NI.J \Q—j C� . -100 f T � - _O -- 'W � l✓ 0 n.K. ` �y,,,J c� -� S, `C ^� -...7` r`�^ , �"c'�L -� l l � � "�,n-0 9 �y,�l i J 't-� `� � i-ty "7 �,'C�.•.A\ �'��F \G (�.Q��p! -.7� -1 �� i. F�^'.'^2.i.. SP�ASOti l - -- Q ,A�- --� —19 - 1 —\ - - -- F7 C� —6 WV- oi- Ca ( " � _ -r►As Iwo —tom ot I,..o•c�l otio� --� K A- kka n �Ac 1 � \4s6 – tt \orb I 1t t L ICLO ` ,nor \Yw� \L ...f t �'j- G� Ot -- V4���a�� `c�(X .O r- \✓ �-- 1'�i4,� p Cam`` �,� �Yi \ w.+ O�-� �1%�- �,J �/�OO.A —. � \j o J w.7'R^ -Sj.o� Ik� ����I" -�C �„�p� p l (gyp., A h – ree�`'�_ I ' 1 w �")� F� L �n. nvf, S ? \ o � �) '`n � A � (�..✓� �� V c,� p ti (VL �.O �+t �j �...0 � 4° 0"C'o "�I —6 WV- oi- Ca ( " � _ -r►As Iwo —tom ot I,..o•c�l otio� --� K A- kka n �Ac 1 � ' 1 w �")� F� L �n. nvf, S ? \ o � �) '`n � A � (�..✓� �� V c,� p ti (VL �.O �+t �j �...0 � 4° 0"C'o "�I �ouo�s� —6 WV- oi- Ca ( " � _ -r►As Iwo —tom ot I,..o•c�l otio� --� K A- kka n �Ac 1 � . G APPLICATION FOR EXCEPTION FROM SUBDIVISION REGULATIONS Request is hereby made on behalf of Commerce Savings Associ- ation of Angleton, Texas (hereinafter jointly referred to as "Applicant ") under Section 20 -19(a) of the Municipal Code of the City of Aspen, Colorado, for an exception from the six month minimum lease restriction contained in Section 20 -22(b) with respect to the condominiumization of the 14 residential units confirmed in Aspen Mountain; Lodge (see page 112, V.A. Lodge Con- dominium Request, Preliminary PUD and Subdivision, Phase One). REQUEST FOR EXCEPTION Section 20 -19(a) grants authority to the Planning Commission to grant exceptions from the strict application of the standards, requirements and other provisions of Chapter 20 when in the judg- ment of the Planning Commission, undue hardship may result from strict compliance. The Applicant requests that the Planning Commission except the condominiumization of the 14 residential units to be contained in the Aspen Mountain Lodge, from the following subdi- vision requirements: §20 -22(b) that all condominiumized units shall be restricted to six (6) month minimum lease with no more than two (2) shorter tenancies per year. BASIS FOR EXCEPTION The Applicant submits the following in support of this application: The stated intention of the Lodge -Two (L -2) Zone Dis- trict in which the Aspen Mountain Lodge is situated is to encour- age the construction of tourist - oriented multi - family units and other types of dwellings. Thus, the requirement contained in , Section 20 -22(b) conflicts with the intention of the L -2 zone district and the permitted uses therein. Therefore, it is neces- sary to grant an exception from §20 -22(b) and thereby recognize _r 6 qI that the intention and permitted uses within L -2 include unrestricted tourist - oriented condominiumized residential units within a lodge complex as the controlling code provision. Addressing the requirements of X20- 19(a), the Applicant sub- mits the following: (1) That the conflict noted above is the special cir- cumstances affecting the subject property such that the strict application of the provisions of X20 -22(b) would deprive the Applicant of the reasonable use of its property; (2) That the requested exception is necessary for the presentation and enjoyment of a substantial property right of the Applicant enjoyed by others. The one pre- cedent of which the Applicant is aware is the Blitz II subdivision exception in which the Planning Commission and Council granted through subdivision exception the condominiumization of a duplex on Lot 15, Anthony Acres Subdivision, without imposition of the restiction contained in §20- 22(b). The zoning of this property was L -2. (3) The granting of the exception will not be detri- mental to the public welfare or injurious to other property in the area for it will resolve a conflict within the code and recognize a use widely existing in the area. / L Dated this !/ of December, 1984. HOLLAND & HART By Ch rles T. Brandt -2- MEMORANDUM TO: Aspen Planning and Zoning Commission FROM: Alan Richman, Planning Office RE: Phasing Comparison DATE: December 3, 1984 Attached for your review is the table you requested comparing in 10 specific areas, the original PUD representations to the phased program representations for the Aspen Mountain Lodge. We should plan on-going through these items on Tuesday to continue to meet our review schedule for this project. ITEM------------ - - - - -- 1. Water, Sanitary Sewer and Storm Sewer .2. Other Utilities 3. CCLC District COMPARATIVE TABLE ORIGINAL PUB AND PHASED PROGRAM ORIGINAL _ REPRESENTATION REPRESENTATION UNDER PHASING__________________ Infrastructural upgrades both for the project and neighborhood. Cable, telephone and electric to be underground - Monarch, dill, Dean, Spur onto 700 S. Galena. Would pay pro -rata share of district costs.., All improvements up front. Monarch and Mill and West block of Dean will be done, east block of Dear, under study. Spur also to be accomplished. No change, but might not put some street trees around Continental, but excess landscaping is proposed on unbuil portions of east wing on a temporary basis. 4. Trails Ski in trail through site and around Trail between Alpenblick and Continental can be done perimeter of both wings, Dean Street although may be unattractive. Dean Street Trail \and Trail, Top of Mill Trail. and rest of ski in trail will be done. Top of Mill trail dependent on connections to other easements and construc- tion of residential units. 5. Tourist Hotel Amenities a. Meetings Areas. 14,000 square feet in West Wing; 7,000 square feet in East wing. b. Lobby Areas. Continental lobby is smaller than that originally pro - posed for East wing. c. Dining -Bar. Most of restaurants are in West wing, space proposed in West wing is over and above original commitment, plus space in Paddy Bugattis will remain. d. Health- Recreation. All of this area (4,300 s.f.) is in the West wing, pool in Continental plus pool in West wing meets commitment to two pools, but the ice skating rink is withheld until second phase. Sundeck.s and picnic amphitheatre also still committed to. 6. Total Design Concept. Complete upgrade of the entire area, removal of subgrade structures, single construction period. 7. Site Work.. Mature vegetation to be retained and augmented by new landscaping; utilities underground; lodge district implemented trails and street improvements; open space exceeds minimum requirements, including open area on Durant Street. Continental to remain but all surrounding building= to be removed. Continental inside is to be re- furbished, and a program is being developed for minimal to moderate external upgrade. Project design for West wing clearly is a major improvement over initial GMP submission but compatibility between the two wings is questionable. There will be two construction periods, not ore. Vegetation is retained to a greater degree due to fewer construction impacts; open space on Durant Street is increased to an entire block of park; all other commit- ments are maintained. ITEM ---------------------- 8. Energy Conservation 9. Parking 10. Circulation 0 to ORIGINAL REPRESENTATION REPRESENTATION UNDER PHASING --------------------------------- - - - - -- --------------------------------------------------- Building to exceed code, solar orienta- No changes to Continental, except new furnace; all tion, support functions, subgrade, com- other commitments to be met. puter controlled HVAC system. 353 spaces for 447 rooms 192 subgrade spaces for the West wing, 19 subgrade (.79 /unit) all subgrade. for the residential units in the hotel, 54 surface spaces on Continental site and 28 spaces in the Continental garage (283 spaces = 80% of 353, .b spaces per unit "�. overall). The proposal exceeds the needs of the !Jest wing, and provides about 40 spaces more for the Con- tinental than is now the case. Variety of pedestrian improvements, reduc- All circulation commitments are unchanged. tion of curb cuts, contribution to Rubey Park study, auto disincentives. ' f •_S 1] LI Doremus & Wells, an association 608 east hyman avenue - aspen, colorado 81611 (303)925-6866 December 1, 1984 Mr. Alan Richman Director, Aspen /Pitkin Planning Office 130 South Galena Aspen, CO 81611 Dear Alan: Our letter, which is submitted with a revised residential GMP submission for 700 South Galena /Hotel West Wing residential units, is to formally request that the City review the applica- tion under the procedures of Section 24 -11.7 of the City Code, as an amendment to a previously approved GMP submission. We believe our new submission is much improved in comparison to the project which received conceptual PUD and Subdivision approval on September 15, 1984 under Resolution 23/84. We expe' that the rescoring of the new project will reflect that. I/ We might remind you that changes to the original submittal were required in order to obtain conceptual PUD and Subdiv approval (but subsequent to a GMP allocation) have prompte applicants to undertake a major redesign of the project, to bring back a project that is responsive to the concer at the conceptual level.- , Section 24 -11.7 of the Code describes the procedure ed in the event that after submission of a GMP appl, substantial changes are made in the original propo/ are deemed "substantial" if they would potential]/ points originally awarded during the GMP scoring represent a change from the approved architec Vr� or if there is a change in the employee housy type and level of physical services and faci7 Changes are to be reconsidered at a publi Planning and Zoning Commission where the proposal to determine whether the projec threshold in all categories and whether/ relative to other projects originally/ 0 Mr. Alan Richman Decemb4r 1, 1984 Page Two • Following rescoring, the P &Z makes a recommendation to the City Council as to the appropriateness of the amendments to the original proposal. Obviously, a decision by the City to require that we re- compete for a �ew allotment places the residential project at risk; such a decision would in turn have implications for the success of the Aspen Mountain PUD as a whole. We believe that the provisions of 24 -11.7 grants the City adequate protection to approve only those amended applications which fare deemed to be an improvement.over the original submission. Thank ;you for your consideration. JW /b • i Berridge Associates, Inc. Planning • Landscape Arch ite ;lure Memorandum To: Jim Holland, Director of Parks rom: James Ripley Date: November 27, 1984 Re: Review Comments —Aspen Lodge We have reviewed your comments regarding the landscape portion of the proposed.Aspen Lodge development. We concur that it would be beneficial to save the eight spruce trees previously designated for removal., as four of the spruce are located on the site of the temporary park. We feel that they should remain in place, and recommend that the other four be relocated to the temporary park site also. At the time of development on the park site, in approxi- mately five years, the spruce will be relocated to either the rear of the East Lodge Courtyard at Galena Street or the rear of the West Lodge Courtyard. If during the course of development we are unable to use the trees or a portion of, they will be offered to the City for their usage. . Regarding the other matters, we agree that all Green Ash street trees should be a minimum of 31" to 4" caliper, B &B, and that the 30" Cottonwood on the corner of Durant and Galena streets should be removed because of.poor health and a conflict with design intent. Also all Populus Augustifolia will be specified as "cottonless" 'and the mislabeled items will be corrected on the drawings per your recommendations. Thank you very much. CC: John Doremus 245 Vallejo St. San Francisco, California 941 1 1 • (4 15 ' ) 433 -2.357 P. O. lox 6364 Denver, Colorado 80206 • (303) 863 -1059 1000 So. Frontage Rd. West, Suite 100 - Vail, Colorado 81657 . (303) 476 -0851 MEMORANDUM TO: Aspen Planning and Zoning Commission FROM: Alan Richman, Planning Office RE: Schedule for Review of Lodge Component of Aspen Mountain PUD DATE: November 27, 1984 ------------------------------------------------------------------------ Following is my proposal for your scheduled review of the Lodge component of the Aspen Mountain PUD: November 20 (R) * Overview, changes since conceptual, conditions 1 through 3 November 27 (S) * Conditions 4 through 19 Dece�ber 4 (R) Comparison of full and phased project commit- ments December 11 (S) Phasing continued, GMP amendment, viewplane, condomi ni umiz ation Dec ber 18 (R) Conditions for Resolution *Note: R Defers to regular meeting date, S to - special meeting date. Please let me know if this proposal is acceptable to you. REAL ESTATE AFFILIATES November 23, 1984 Mr. Alan Richman Aspen Planning Office 130 South Galena Street Aspen, Colorado 81611 Re: Aspen Mountain Lodge PUD Replacement of Displaced Employee Housing Dear Alan, Submitted herein is information concerning the replacement of employee housing which will be displaced by the Aspen Mountain Lodge PUD. The information complies with Section 20 -22 & 23 of the Aspen Municipal Code and responds to the Aspen /Pitkin Housing o Office letter of February 3, 1984, in Attachment A. The informa- tion addresses each item raised by the Housing Office letter. 1 -A. Melville II Building. The Melville II building (Haerdle Cottage) has been used by Mr. Melville for employee housing for the Mountain Chalet as expressed in his letter in Attachment B. The four bedroom building houses from 8 -12 employees in the win- ter and 4 -8 employees in the summer. Averaging the high winter occupancy of 12 employees and the high summer occupancy of 8 employees gives an average of 10 employees on a year -round basis. 1 -A. Black Residence. The lower apartment of the Black residence houses a married couple (2 employees) per Mr. Black's letter in Attachment C. 1 -B. Townplace Apartments. The 2 Townplace apartments have housed up to 4 management employees per Richard Wilhelm's letter in Attachment D. 1 -C. Off -Site Housing. The only off -site employee housing pro- vided for the Aspen Inn, Continental Inn, and Blue Spruce has been in the Holiday House Lodge. Per Richard Wilhelm's letter in Attachment D, 7 -10 employees have been housed as needed in the 5 deed restricted and 2 free - market garden level units in the Holiday House Lodge. As you know the Hillside Lodge is proposed to be exchanged: for the Holiday House Lodge which will result in a net increase in employee housing as described in item 1 -D. North of Nell Building P.O. Box 3159, Aspen,Colorado 81611 Telephone: 303) 925 -4530 low • REAL ESTATE AFFILIATES Incorporated Mr. Alan Richman November 23, 1984 Page Two 0 1 -D. Holiday House Lodge and Hillside Lodge Exchange. The Holiday House Lodge is to be exchanged for the Hillside Lodge. The Hillside Lodge has 14 units (14 bedrooms) while the Holiday House has 27 units (33 bedrooms). The Hillside Lodge houses up to 30 employees in a shared room living arrangement which averages approximately 2 employees per bedroom. If the Holiday House is used in a similar dormitory manner, it could house up to 66 employees at 2 employees per bedroom. Using the Housing Authority's recently adopted dormitory standard of 150 sf per employee applied only to the net living area of the Holiday House (9,672 sf) would allow for 75 employees. Another example of a simple dormitory configuration for the Holiday House is given below: Holiday House Lodge 21 units - std. lodge unit - 275 sf avg. @ 1 emp. /unit = 21 emp. 5 units - 2 bdrm.ldg.unit - 596 sf avg. @ 3 emp. /unit = 15 emp. 1 unit - 2 bdrm. apt. - 917 sf avg. @ 4 emp. /unit = 4 emp. '2_7 units 40 emp. As demonstrated, the Holiday House Lodge can easily house 40 to 66 employees in a dormitory manner, which is the likely manner the Lodge will be used. Therefore, the exchange of the Hillside Lodge for the Holiday House Lodge will result in no net loss of employee housing to the community but will actually produce a net gain as shown below: Existing Hillside Lodge- 30 emp.housed Holiday House - 10 emp.housed 40 emp.housed With Exchange Holiday House- 40 -66 emp.housed I also wish to emphasize the Holiday House Lodge will provide not only more, but also a higher quality of employee housing because of increased employee privacy and amenities as the swimming pool, saunas and lanundry room. 2. Mine Dumps. No employees of the existing hotels are housed at the Mine Dumps on a special basis per Richard Wilhelm's letter in Attachment D. 3. 1978 Aspen Inn Expansion. In the 1978 Aspen Inn Expansion GMP application for 36 free- market lodge units in Attachment E, Mr. Cantrup did represent a commitment for 24 employee units housing 35 employees. The Aspen Mountain Lodge applicant feels REAL ESTATE AFFILIATES Incorporated Mr. Alan Richman November 23, 1984 Page Three this was an unreasonable and as demonstrated unfulfilled commit- ment by Mr. Cantrup and that the present applicant should not be bound by Mr. Cantrup's action. To meet the intent of Code Section 20 -23(2) the present applicant will commit to house 100% of the employees generated by the 36 lodge units of the 1978 Aspen Inn expansion application or to house 13 employees. (36 lodge rooms x .36 emp. /room = 13 employees.) The commitment to house 1000 of the employees generated by the 36 lodge units is generous given that the applicant's GMP commitment for new lodge units is to house 60% of the employees generated. In summary, the Aspen Mountain Lodge applicant feels he complies with Section 20 -22 & 23 of the Code by commiting to house the following displaced employees: Melville II replacement - 10 employees Black residence replacement - 2 employees Townplace Apts. replacement - 4 employees Hillside - Holiday exchange - 0 no emp. displacement Pine Dumps - 0 no emp. displacement 1978 Aspen Inn expansion - 13 employees 29 employees Once you have reviewed the submitted information, please feel free to give me a call on any questions. Sincerely, \Jilt Curtis JC:cck Enclosures \ V cc: Jim Adamski, Aspen /Pitkin Housing Office ATTACHMENT A February 3, 1984 _aim Curils 300 Easi Hyman Aspen, CC 81611 Dear Jim: 0 As me have discussed, I mei uifh Sunny Uann and Alan -Richman of fhe Planning Office and addressed some of the concerns in your lefier daied December 30, 1983. 1. if was conclued ihaf fhe affadavif which has been filed by Dick Nilhelm on behalf of ihe Can irup esiaie is deficieni •per secfion 20-22) in the following areas and requires furfher clarificaiion: A. There is a need fo idenfifv fhe use of ihe Melville 11 Building and fhe Black residence relafive io employee occupancy in fhe la 18 monihs. B. Based upon an independeni invesfisafion by fhe Housing Office, me beleive fhai 4he Tounplace Aparimenis have been Wilized on a ions fern basis by employees of fhe Confinenfal inn. infor- mation which has been Provided; leads us -fo believe fhai f , 2 bedroom uniis have been occupied by such employees. C. There is a need io ideniifv all of ?he off -sife housing Wilized by fhe Aspen inn, ihe Blue Spru ce and Ve CoNinenial inn employees. D. The need for .= r' on fhe exchange of ihe Hillside Properiv for ihe Holiday House Prop`_ Per t number of employee uniis in each building so Kai we could be fur iher" s•iiified relaiive io ihe deed resiricied nature of Kose uniis. 2. The second PorNon of Your leiier referred io oif-siie housing and fhe need io mainiain all Previous housing supplied m0hin Ke curreni Proposal. If was determined Vai under code secKon 70-272) for lodge condominiumi- oaf onn ihai all Previous housing is io be maintained. This mould include, for example, and not limited fro: fhe housing of fhe Mine Bumps and of fhe Holiday House. 3. The iuesilon also arose regarding fhe 24 employee uniis which mere included miih fhe 36 free markei uniis from The Aspen inn GMP expansion approval. The firsi quesii_in concerns fhe number of People infended io be housed. Secondly, the idenfificafion of those jim Curfis February 3, 1984 Page Two rep lacemeni unifs fur iher explained. MY replacemeni curreni Proposal. be helpful. • in Me curreni Proposal should be The Planning Office does not feel of the 24 unifs is evideni in Me An explanailon of ihis maffer would Should vou have anv quesfions; Please coniaci my elf or Sunnv Uann. Program Developmeni GS•CIM i cc, Alan Richman, Planning Office Dunn' Uann, Planning Office REAL ESTATE AFFILIATES Incorporated Dscember- 30--j-1-- 1983 Mr. Sunny Vann, Director Aspen Planning Department 130 So. Galena St. Aspen, CO 81611 Dear Sunny: On behalf of the Aspen Mountain PUD could you please give me your interpretation of the following questions as they relate to the Aspen Municipal Code. 1. Section 20 -22 Condominiumization. Attached is an affidavit from Dick Wilhelm presenting the historical use of the residential properties included in the Aspen Mountain PUD. Could you and the Housing Authority review this information and give me an interpretation if this sufficiently demonstrates that,,development of the residential portion of the PUD will not reduce the supply of low and moderate income housing and therefore will not have any employee housing requirements upon condominization. 2. Section 20 -23 Condominiumization of Lodges. Per the letter from Dick, he has given the historical use of the lodge properties included in the Aspen Mountain PUD. Could you and the Housing Authority review the information and give me an interpretation of the applicability of Section 20 -23(2) and specifically your position concerning employee housing relative to condominiumization of the lodge properties. Could you please. add- r-e-ss the definition 'of employee housing-,under Section 20 -23(2) i.e., housing that has been historically deed - restricted for employees, housing that has been used for employees on a year - round basis, etc. Thank you for your assistance in this matter and feel free to call on me for any clarification. Sincere , w qm Curtis North of Nell Building P.O. Box 3159, Aspen,Colorado 81611 Telephone: 303) 9254530 CONTINENTAL* INN and Conference Center at Aspen Richard R. Wilhelm GENERAL MANAGER December 22, 1983 Ms. Gail Schwartz Assistant Housing Director PITKIN COUNTY HOUSING AUTHORITY 0100 Lone Pine Rd. Aspen, CO 81611 Dear Gail: Pursuant to our conversation.recently of supplying to you information relevant to any free - market /employee housing that has taken place on the Aspen Lodge site over the duration of my involvement, I have been involved with the operations within the "hotel" site for a five -year period, but it is my understanding that you only need an aiffidavit only for the past three years. Therefore, I offer you the following statement, describing, to the best of my knowledge and ability, the use of buildings within the hotel site over the past three -year period. 1. Continental Inn (Block 91 - Lots M -R): The Continental Inn has never been used for employee housing during the high season of winter or the high season of summer. It has always been used as short -term rental property. Some employees in small amounts have stayed at our property for periods during the height of the off - season. 2. The Chase Duplex (Block 91 - Lots D & E): This has never been used for employee housing but has been used as a residence for Mr. & Mrs. Cantrup, and as offices. 3. Townplace Apartments (Block 91 - Lot C): There are four apartments in this building together with some commercial frontage on Durant. This property has been used occasionally for manaqement level employees but is generally used for short -term nightly rental or high -rate monthly rental ($1000 per month for a two- bedroom apartment and $750 + /- per month.for a studio). This building has been rented through the Continental Inn front desk at nightly page 1 of 4 515 SOUTH GALENA ASPEN, COLORADO 81611 (303) 925 -1150 Letter to Gail Schwartz 12/22/83 racks rates during certain high season periods, and monthly at other periods. We have had extension phones, cable TV, etc., provided to the Townplace from the Continental Inn. 4. Hillside (The Aspen Ski Co. ownership, Block 91 - Lots A & B): This building has been used by the Aspen Ski Company and has not been under the control of the Cantrup Estate. 5. Mountain Chalet (Block 84 - Lots A, B, C & D): This property has been used for occasional monthly rentals and weekly rentals during the off - season, but during the season (including this year) we are renting it on a nightly basis at a $40 -60 /night rate (depending upon the time of the winter season). This property is booked through the Continental Inn, and daily audit sheets are avail- able. 7. Aspen Inn: The main building and the six two - bedroom apart- ments have been used for nightly rental only, during the last two - year period. Once again, we have had occasional off - season short - term employee housing, but nothing of any duration; especially during the high season of summer and winter, it has been nightly rental at high rates, or high weekly or monthly rates. 8. West & East Chalet: These two chalets have been used as short - term nightly rental during the season at a $300- 400 /night rate, with an occasional drop to $150 /night rental. The East Chalet this winter is being rented at $1250 /month, but the West Chalet will continue on a nightly rental only in the $300- 400 /night range. 9. The Paas House (Block 91 - Lots K1, K2 & L): This is a duplex, of which part is used for offices recently, but which previously was an apartment, and of which the other half is an apartment which I have been renting the last years at $1000 /month. 10. Melville #2 (Lot 8): This property is controlled by Ralph Melville and I cannot state the use. During our meeting, you mentioned that you were surprised that we did not keep an on -site maintenance manager or similar person within the confines of our property. I would like to clear that up by stating that we have some off - premise housing which has been used for employees periodically & on a temporary basis as needed, and that many of our employees (particularly on a management /supervisory level) live down - valley or in other parts of Aspen in housing which is not part of the Cantrup Estate. page 2 of 4 Letter to Gail Schwartz 12/22/83 Again, we may house employees for brief periods at our properties (a few days or no more than two weeks while they are trying to establish permanent housing within the community) . Please realize that it was to our benefit in L2 and Ll zone to do what those zones provided for, which was to operate lodging (and-benefit from the nightly rentals) rather than employee housing (loss of revenues). Once in a while, we may have subsidized an employee being housed in other property outside the hotel site, but infrequently. Gail, that covers in context all the buildings which have been rented on the "hotel site." Please advise me if you have any further questions about the property. I would be pleased to meet with you anytime to review this schedule. Thank you for your cooperation. truly yours, 7a Richard R. Wilhe m General Manager Hotel & Property Operations THE CANTRUP ESTATE RRW:ld cc: Spencer F. Schiffer John Doremus Joe Wells Robert Calloway Alan Novak " Jim Curtis :.: Ella Pyle John Roberts page 3 of 4 1 � Letter to Gail Schwartz P.S. Gail, please also note that although the building department has not recognized units 191 - 196 at the Continental Inn, these units have never been rented out on a nightly basis in the free market area. We have submitted to the planning office notorized letters from management level employees of the Continental Inn from 1069 -1982 (amongst them an attorney, a developer, a certified public . accountant, and a licensed real estate broker), stating that those units were always used as nightly free - market rentals and have never been used for employees. STATE OF COLORADO ss. COUNTY OF PITKIN ) The foregoing instrument was acknowledge before me this 2 day of December, 1983, by Richard R. Wilhelm. My commission expires: Wi ss my h nd and official seal. ary Public: Address: Q S page 4 of 4 12/22/83 ATTACHMENT B (303) 925 -7797 Febnuany 22, 1984 Jim Cuntus 300 E. Hyman Avenue A6pen, CO 81611 Dean Mn. Cunfii 6 , 333 east durant avenue aspen, colorado 81611 The Mountain Chate.t has used the hone a on S. Mitt St., known a3 Haendte Cottage, as empf.oyee hou6ing Jon many years. Haend,ee Cottage has been vented only on a tong zenm ba.6.i�s 4on employee6. Du ing the win-teA, ,there are between eight and .twelve occupant6 geneAati.ng a tentai' income o4 $900 - $1200. DuAing the summer months, - there are usustty 4oun to eight people in the house, which genena.te,6 $600 - $800 in nen-t. Sineenety yours, Ratph Metvitte Owner o6 Mountain Chatet IN ASPEN— 333 east durant avenue the mountain chalet has IN SNOWMASS— box 5066 aspen, colorado TWO LOCATIONS snowmass village, 303 - 925 -7797 81611 303 - 923 -3900 colorado 81615 ATTACHMENT* ANDREWS D. BLACK P. 0. BOX 7226 SANTA FE, NM 87501 46 C Ur-a 6 ATTACHMENT D MEMOR AIIOUM TO: Jim Adamski FROM: Dick Wilhelm DATE: August 1, 1984 RE: Letter dated February 3rd from Gail Schwartz to Jim Curtis. Several of the questions forwarded by Gail in February need to be addressed by me, as I am general manager of the Cantrup Es- tate properties. Specific questions, per Gail's letter, which I wish to clarify, are as follows: 1 -B.. Townplace Apartments. Since my original correspon- dence before Christmas, it was decided that the Townplace units were not going to be viable on a short -term tourist basis and thus, were assigned to management level employees for the duration of the winter. The two 2- bedroom units thus assigned occupy 728 square feet each and the rent paid by said employees is $750 /month or $1.03 / sq.ft. The two units have housed from 3 to 4 management employees and con- tinue to be used for management employees. 1 -C. The only off -site employee housing provided for the Aspen Inn, Continental Inn, and Blue Spruce within the past three years has been the Holiday House Lodge. The Holiday House has 27 units (33 bedrooms) in a mix of 21 lodge units with private baths (avg. 275 sq.ft.), five 2- bedroom lodge units with private baths and kitchens (avg. 596 sq.ft.), and one 2- bedroom apartment with bath, living room and kitchen (917 sq.ft.). Lodge amenities include a swimming pool, two saunas, laundry room and lobby. The Holiday House has housed 7 -10 hotel employees on an as needed basis in five-deed-'!restricted and two free - market garden level units of the lodge. The five deed restricted garden level units are #12, 13, 14, 15, and 17 and were deed - restricted to low- income guidelines under prior approvals granted to Mr. Cantrup. The balance of the free - market units have been rented on a nightly basis during the high season or to the Music Associates during the summer or rented weekly and monthly during low periods. When rented monthly, during the low period, rents average $350 for a standard room (275 sq.ft. or $1.27 /sq.ft.), $600 for the 2- bedroom units (596 sq.ft. or $1.00 /sq.ft.), and $1000 for the 2 bedroom apartment (917 sq.ft. or $1.09 /sq.ft.). - continued- s.M • 1 -D. As you know, the Holiday House is proposed to be ex- changed for the Hillside Lodge owned by the Aspen Skiing Company. The Hillside Lodge has fourteen units (14 bedrooms) while the Holiday House has twenty =seven units (33 bedrooms). The exchange will result in both an increase in units and higher quality units which the Aspen Skiing Company will have available for employees. 2. The Mine Dumps have not been used to house employees of the Aspen Inn, Continental Inn, Blue Spruce or other Cantrup employees per se. Employees of the general commun- ity traditionally lived in the Mine Dumps but the Cantrup hotel properties did not specifically hold units for their employees, rather they are rented based on market demand. The Mine Dumps consist of eighteen studio.uAits (avg. 308 sq.ft.), two 2- bedroom apartments (758 and 1288 sq.ft. respectively), and one 3- bedroom apartment (1510 sq.ft.). The studio units rent for an average of $300 /month or $.97 /sq.ft, The 2- bedroom apartments rent for $500 and $700 /month or $.66 and $.54 /sq.ft..respectively. Hopefully, the above information will clarify your questions. If I can be of further assistance, please give me a call. Thank you. c "ard i _ RRW /ght A T TA�CHMENT E 0 C 27 SECTION V . CONFORMANCE- TO LOCAL PUBLIC POLICY GOALS aa. Reduction in Tourist FAR The evaluation for maximum points is greater than a 15% reduction of tourist rental space below maximum allowable internal FAR. Under L -2 zoning,_the maximum allowable rental space for the 90,000 square foot site is 60,300 square feet or 67% of internal FAR. The maximum rental space under zoning is based on the tourist rental space increase provision for employee housing calculated at 33.1/3p of all lodging space between .5:1 to .75:1 FAR devoted to employee housing with the remainder available for tourist rental. As indicated in the Program Summary, the Inn has 40,000 square feet of tourist rental space,. .which is 44' of the site's allowable internal FAR. This is a 23% reduction of .tourist rental space from the maximum allowed under zoning. bb. Provision of Employee Housing The evaluation for maximum points is 751'2 or more lodge employees housed on site. As described in the Introduction, the 24 employee units are a mix of new construction and converting existing units. The 24 units will lodge approximately 35 people. i 28 ; Employee units consist of .2 large apartments of 1,000 square feet each, 18 lodge studios of 325 square feet each, and 1,500 square feet of dorm housing. A total of 9,500 square feet of employee housing is,provided. The 9,500 square feet figure is greater than the 6,000 square feet noted for employee housing in the Program Summary building FAR, because 3,500 square feet is sub -grade space which is.not calculated in zoning FAR. Employee uni.ts are shown on the floor plans in the Architectural Design section. The table below illustrates the conversion of employee units to the number,of employees housed. The 1,500 square feet of dorm area is converted to units at 325 square feet per unit consistent with the lodge studio standard. Employee Actual. Employees Units Unit Type Sq. Ft. Conversion Factors Housed 2 units Apartments 2,000 sq.ft. @ 2.5 emp. per unit = 5 18 units Lodge studios. 6,000 sq.ft. ,@ 1.2 emp. per unit = 22 4 units Dorm area 1,500 sq.ft. @ 1.0 emp. per 200 sq.ft. = 8 24 units 9,500 sq.ft. 35 Employee housing will lodge 80° of the Inn's 44 total lodge employees listed in Appendix D. Should some employees decide not to live on site, the space will be available to other employees approved by the client. cc. Auto Disincentives The evaluation is the project's conformance with the city's auto dis- incentives policies for limousine service, reduced parking and employee parking prohibition. • CONTINENTAL INN Renovation Plan 0 General: The total renovation budget for the Continental Inn is estimated to equal approximately $1.2 million. The renovation is scheduled to occur prior to the summer season which begins June 1985. Building Exterior: Planning for changes in the building exterior is still underway and will be dependent on final recommendations of the project design team. The building exterior will be addressed by removing and /or changing the color of a signifi- cant portion of existing wood on exterior balcon- ies. Repainting and restaining on the structure will dramatically improve the exterior. In addi- tion, the roof lines can be dressed up to change the current boxy appearance. The design team is working on plans to improve the entrances to the restaurant and hotel lobby. There are severe roof leaks currently in the east wing which will need immediate repair and eventual replacement. The budgeted amount reflects a new roof in this area. Landscaping will have a dramatic impact through- out. Cleaning up existing trashy areas and brightening all areas with flowers and plants will help project a new look. The colorful flags and banners; new signage; and exterior lighting will greatly improve the exterior of the hotel. Lobby: The lobby will be enlarged by eliminating walls and removing existing railing. The entire lobby will be lightened with the use of much softer colors and a new lighting package. All existing floor, ceiling, and wall treatments will be changed to provide a much more pleasing /brighter lobby area. f' Front -2- Desk: The front desk will be reconstructed to allow for a more efficient work space. The current con- figuration allows a maximum of two persons to work efficiently. The new configuration will eliminate unsightly key /message cubby holes, and produce a cleaner looking work space from thE! guest's per- spective. Administration: The administration areas include the existing front office /reservations area, Dick Wilhelm's office, and rooms 191 - 196. The existing front office/ res- ervations area will be converted into strictly front office /bellmans storage. Dick Wilhelm's office will be converted into a sales and marketing office. The 190's will be used for the reservations, general management, and hotel accounting offices. This reno- vation will primarily require carpet, furniture, and an appropriate lighting package. Public Hallways: The key to the hallway renovation will be the lighting.package. Existing lighting provides a gloomy feeling. With a new lighting package, carpet and some ceiling and wall treatment, the hallways will become very pleasing. Pool /Sauna: The primary concern in these areas is flooring and paint. Current flooring can be cleaned up and a new paint ,job will brighten the area. Meeting Space: With new ceiling treatment and better lighting the meeting space will become very acceptable. There is a need for several wall.sections to be purchased as well as expansion of existing storage. Food and Beverage: Assuming the Paddy Bugattis lease is set- tled, we will need to purchase a new FFE package for the restaurant and bar. Existing carpet is in reason- able condition. A few structural changes in the bar will allow for more efficient use of the pool window. Guest Rooms: Guest rooms represent the major expenditure in the renovation plan. Our review of the guest rooms has resulted in the following recommendations: Six rooms below grade on the north side of the east wing are presently condemned and cannot be occupied. These are to be converted to adminis- trative office space. Six rooms:in the east wing have only a 78" ceiling height which is unacceptable for hotel occupancy. these are to be converted back to maids closets or into vending areas. \J -3- • Nine rooms below grade on the south side of the east wing are considered to be uninhabitable for first class hotel guests. These will be converted to some other use which could include office space or temporary housing for employees. These recommendations will result in a total room inventory of 157 rooms. Depending on the room count in Phase 1 -A of the Aspen Mountain Lodge Project, additional substandard rooms can be eliminated. Guest rooms will be renovated with the following systems: o New door locking.system o. Peepholes and security signage • Smoke detectors • Carpet • Vinyl wallcoverings • Bedspreads • Drapes • Lighting • Artwork • Bathroom flooring • Bathroom lighting • Shower heads Rooms in the south and west wings will receive all new furnishings, carpets, spreads, drapes, lighting and artwork. These items will replace some of the original carpeting and furnishings. Solid core doors will be installed from the Aspen Inn construction site. In the case of the west wing rooms which have sliding doors, a door frame will be constructed which will accept tLe solid core doors. This will greatly enhance security and privacy in the west wing rooms. East wing rooms will.receive refurbished furniture from rooms in the south wing. East wing bathrooms will all be ventilated and tile will be enameled in an attempt. to improve the appearance. Fire and Life Safety: The health and safety of a hotel's guests is a major concern of the property's owners and operators. The renovation plans for the guest rooms include solid core doors, new locks and room security devices and smoke detectors. Other aspects of this program will be an alarm system which is likely to be required by the property's insurers and such items as improved exiting and directional , signage, improved lighting in all areas, and improvements of as well as regular maintenance of fire extinguishers and other fire equipment. Management will work to improve overall fire and life safety through intensive training in fire safety, CPR, first aid and general security -4- and emergency procedures. Regular inspection and preventative maintenance of all mechanical and electrical systems will further improve the fire and life safety aspects of the Continental Inn. Energy Efficiency: Guest room renovation plans include the installation of solid core doors including weatherproofing and new drapery. Both features will improve the energy efficiency of the guest rooms. Roof insulation and more effective light- ing will help the overall building efficiency. Im- proved management including the implementation of an energy committee of supervisors and line employ- ees are also factors which ill improve efficiency. .r TO: FROM: : RE: DATE: MEMORANDUM Aspen Planning and Zoning Commission Alan Ri chrr an, Planning Office Aspen Mountain Lodge Preliminary PUD /Subdivision, Condom iniW, zation, Viewplane - Public Hearing: Novenber 20, 1 984 114 TRODU CT ION Following is a comprehensive review of the Preliminary PUD /subdivision submission for the lodge component of the Aspen Mountain PUD, including other associated review comments. Given the complex nature of this project and due to the loss of staff expert��se on this project due to personnel turnover, I strongly urge that review of this memo not substitute for a full reading of the applicants' submission, transmitted to you separately. I also find that given the volume of issues which need to be addressed, the complexity of many of these problems and ;my relative lack of background on the project, I may have only superf icial- ly covered some topics. I ask you to he'.p me to pinpoint the mcst significant items so that in the coming. meetings I can augment :he Planning Office review of these critical issues. APPROACS The Planning Office has evaluated this project with respect to C "ity Council's 19 conditions of conceptual approval. We have also identified various additional issues raised by thi:� application, involvi_na changes to the proposal subsequent to cc- nceptual approval, other requirements of Preliminary PUD / subdivision and concerns relative to other associated reviews such as condominiumization and Wheeler V i ew pl ane . At . this time, we have not chosen to present you with a list of proposed conditions, . although we have begun internally to compile such a list.. We believe that it would be preferable for you to spend some time reviewing this application and taking comments from the public before we set forth a detailed recommendation with conditions. we anticipate that it may require several meetings before we reach this point and therefore thought it was somewhat premature to finalize our position. GEN rRAL Bef ore getting into a detailed review of the project, it is f irst appropriate to describe some basic points which will affect- any action. we take. There roint.s are as follows: 1. This application requests preliminary PUD /subdivision approval for the lodge component of the Aspen Mountain POD. Permission to phase and separately review the lodge and residentia? components was expressly granted by Counci..l. on August 27, 1.984, provided that the approval of any preliminary stage riot be become effective until. the preliminary review for the entire FEUD has been approved. 2. The applicants' e pioyee housing commitment for the e- _nt.ire Aspen Hountai.n PUD has been approved by the P &Z and Council, subject to conditions. The applicants have suggested that a recalculation of the PUD's eYriplcyee housing generation be accomplished as a result of their refi.ner,,ient of the lodge's development program. The Planning Office concurs that a revised employee housing cori�rii. _:meat should be submi >`ed concurs not with the Preli.m:i nary "PUD/subdivision applicatvi.on for the residential component of the PUD. 3. There have been a variety of sig.n._ficant design changes to the lodge since its initial review liy P &Z. Some of. the changes are a dir ^ct: !!'s?� ^nCc to condi.tic!�s imposed by either P &Z or Council, while others have been induced by outside forces or by the applicants. No GMP amendment request has yet been submitted. However, at such time as P &Z finds itself approaching an action on this preliminary submission, we believe you should require the Gr,P amendment to be processed. Should there be aspects of this submission which are unaccept- able to you, the applicants and Planning Office would prefer to resoli.ve these problems prior to undertaking the GMP amendment process. Final action on the amendment would be taken b_.. Council prior to or :in conjunction with final PUD /subdivision approval. 4. Financial and market considerations have caused the applicants to adopt a phasing plan for the hotel. As opposed to constructing the entire hotel at once, the applicants now propose: a first phase, referred to as Phase 1A, which consistis of' the project's west wing. The Continental Inn will be extensively refurbished and operated for a period of up to five years at which time construction of the remainder of the hotel would commence. A fundamental question :which the P &Z should address with respect to this change is whether or not the deve.lo ,n ent program for Phase lA is fully acceptable, in the event construction of the remainder of the hotel proves unfeasible. Because of the phasing, a variety of issues crc:p up with respect to infra- structure, parking, and ocher detailed aspects of the project. A more in depth discussion of these problems is provided in subsequent sections. 5. The applicant has offered to donate to the City for park and open spce purposes, the remainder of the I:ocY? Lumber property. (approximately 40,000 square feet) to augment the 21,000 square feet of the property which is to be exchanged for the .City lots and vacated right -o% -way included within the PUD. 6. P &Z should remember that Preliminary PUD is a distinct review process in which final approval is granted by the Commission. However, review of a preliminary PUD should be consistent with Council's review of the project concept, or we may find ourselves in a situation where at final plat Council finds itself unable to accept the plat approved preliminarily by P &Z. COMPLIANCE WITH CONDITIONS OF CONCEPTUAL APPROVAL Following below is a verbatim recitation of each of the 1.9 conditions of Council's conceptual approval and a brief analysis of the applicants' degree of compliance with the conditions. 1. "The applicants continuing to explore architectural treatments of the lodge buildings as well as other techniques which could be employed to give the appearance that, although under common ownership and /or management, that there is more than one lodging facility on the site. " This condition reflects Council's concern with respect to the overall scale of the lodge component. By requesting that, architecturally, the project look :Like two separate hotels, I believe Council felt that the end result would be more consistent with Aspen's so called "village scale. " A review of the lodge's revised architecture indicates that, while they have bLoken the project down ii7to distinct building COMpo- nents, the same architectural theme has been utilized throughout the entire lodge. rhc applicati.on states that the ledge employs "die_{ = erent architectural organizations of facade, wi.,ndow and balcony treatment for each major hotel wing and the e;_ter:i o.,r'. c­_',rf_ aces and facade detail have been designed to accept f urther visual demarcation utilizing - 2 - changes in color and stair., as well as sur ace our opinion, to the casual obsorver, the 7_ =bridge appear to have been designed by one individual read as one extensive project. texture. " However, in component will. clearly and, most likely, will From a strictly 'technical standpoint, the- Planning Office concludes that the applicants have not complied with the spirit or the intent of this condition. However, Condition 1 should not be a technical evaluation, requiring instead some subjectivity by P&Z as regards the scale and nature of the design. We suggest that you weigh the public continents on this issue with your own feelings on the matter and make a statement to Council as regards the appropriateness of the lodge's design. Furthermore, you should require detailed information on the materials to be used throughout the project which may help to demonstrate the applicant's claims of differing architectural organizations and visual demarcations. 2. "The external floor area of the lodge component of the "aspen Mountain PUD (i.e., Lot 1) not exceeding 310,275 s. f. and the external floor area for the entire PUD (i. e. , Lots 1, 2, 3 and 4) not exceeding 438,200 s. s. " The approved external floor area of 31C,275 sq. ft. for the lodge component of the Aspen Mountain PUD (i.e., Lot 1) represents a reduction obtained by Council from the applicants' original conceptual submis- sion. Based on the applicants' comments :in the preliminary PUD /sub- division application, it is clear that they- assumed that this reduced floor area constituted, for all ;pract: *:cal purposes, the useable internal floor area of the building. A -8 a. result of the lodge's revised architecture, however, as much as 25,000 sq. f t. of covered external. areas around the perimeter of the hotel will probably have to be included in its external floor area. While some of this square footage may be excluded as a result of the interpretation of our `FAR regulations, it is clear that the external. floor area of the hotel exceeds its approved limit. The vpplicants contend that it was clear ':.in the numerous discussions with Council which led to the several reduc.t. ions in the lodge's square footage that the external areas to the building were not included in the calculations of the floor area presented to the Council. To my knowledge, this distinction was never openly discussed. However, it is critical to note that the principal reason for the increased FAR is the design requirement imposed by Council. By "inverting" the mass of the building from the original design., we feel that the applicants have successfully reduced the perceived bulk of the building. In their efforts to create design variations and to "punch holes" in the previously uniform street facade, the design has created significant covered areas, necessary to the function of the building, and therefore likely to be included in the FAR calculation by the Building Department. In addition to the disputed 25,000 sq. f t., the applicants also propose to transfer approximately 7,260 sq. ft. of approved floor area from the 700 S. Galena component to the revised hotel. This transfer is designed to reduce the FAR of the 700 S. Galena component, thereby reducing public opposition to this project, and to construct a portion of the approved units int= erna.l to the hotel. It should also be pointed out, that both the size of the overall PUD site as well as the size of Lot 1 have changed since conceptual approval. Specifically, the overall site is approximately 1,600 sq. ft. smaller as a result of the realignment of Galena Street and various street right -of -way dedications. Lot 1, however, has increased some -what in size as a result of the transfer of site area from Lot a necessitated by the Galena Street realigi:iment. The net effect of increasing the external floor area of the lodge component and increasing the. size of Lot 1 is an increase in the cKternal FAR ratio of Lot 1 from 1.29:1 to approximately 1.4:1. The extent of the increaser however, is subject to an exact calculation of I-low much of the approxi- mately 25,000 sq. ft of .additional external floor area is in fact subject to inclusion. m� With respect to th-e approved external floor area of the entire PUD, . the applicants purport to be consistent with this condition. However, oncL again, the inclusion' of the approximately 25,000 sq. ft and the overall reduction in the entire PUD site area clearly means that the project does not meet this condition. In summary, the applicants have riot met Condition 1#2 in their preliminary PUD /subdivision submission. Their arguments, however, do have merit -in that they have 'attempted to meet the spirit of what Council has been trying to achieve, that is a reduction in the apparent mass of the lodge component of the PUD. A strict interpretation by P &Z of the condition, however, should result in further reductions in the mass of the lodge. Should P &Z require a firm opinion by the Building Department with respect to the inclusion of the covered areas in the FAR calcula- tion, we will endeavor to obtain-this information for you. 3. "The height of the proposed hotel not exceeding forty -two (42) feet from natural grade to the midpoint of the roof with the`. exception of elevator tower areas which shall not exceed --Fifty-five (55) feet from natural grade to the midpoint of the roof." As indicated in the applicants' submission, the revised lodge component complies with this condition, with the e;'ception of several distinct areas in which the height to the mid - point of the roof exceeds the 42 foot requirement-by up to three feet. The applicants contend that the chosen design results in a majority of the building being less than 42 feet and results in a perceived height and bull: which is more in keeping with community concerns than woul%' be the case through strict adherence to this condition. The applicants are currently preparing graphic representations for your meeting to support this claim. The issue with respect to height is similar to that regarding FAR. The applicants have not complied with the letter of the condition imposed by Council. However, our review of the project's architecture demon- strates to us a successful effort at reducing the perceived height and bulk of an admittedly tall, bulky building. We suggest that you review these materials and pass on your feelings to Council as to the appropriateness of the applicants' non - compliance with the 42 foot, height limitation. 4. "The applicants' resolution of the Fire Department's concerns with respect to the accessibility of certain internal areas of the ledge site for fire protection purposes." The Fire Department was concerned about access to the internal courtyards of the proposed lodge in its review of the applicants' conceptual submission. The Aspen Fire Chief referred the applicants' consultant, a specialist in fire protection engineering, to the Denver Fire Prevention Bureau. The Bureau commented with respect to the design of the hotel and to the proposed fire prevention provisions to be incor- porated. In the absence of any specific objection from the Aspen Fire Department (no comments received) , it would appear that Condition 1 3 has been satisfactorily addressed. The recommendations of the Denver Fire Prevention Bureau and the specific measures proposed by the applicants' fire ;.protection consultant should be made conditions of preliminary PUD /subdivision approval. The Engineering Department, however, noted in its review of this application, several discrepancies with respect to the location and number of fire hydrants in . the immediate site area. These discrepancies should be clarified prior to final PUD /subdivision submission. 5. "V,7ritton clarifications as to which sub:;'crinti.ve representations of the TDA, Associates traffic and parking analysis the applicants intend to implement a_s part of the Aspen Mountain PUD, in particular, further clarification with respect to -hose techniques desi gnec to mi.t:i gate the potential impacts of peak occupancy on adjacent streets. " -- 4 - The applicants, in their. conceptual P1'JD /subdivi ,ion submission, identified a variety of provisions to mini;; J.ze auto travel and parking demand. It was unclear, however, as to the extent to which the applicants proposed to implement the various provisions, hence: a request to clarify the specific measures errhich they propose to under- take. The applicants' clarifications are outlined or: Pages 7.5 thru 78 of their preliminary PUD /subdivision suLv,ission. In general, these representations should be made condition.- of preliminary PUD /s,ub- division approval. Given the very general nature of the representations, the specific language will have to be addressed in the context of the final PUD /subdivision agreement and consid.c'ration should be giver: to the practical aspects of enforcement. I believe, however, that if the language can be .further clarified as part of the PUD /subdivision agreement, that the representations of the a=pplicants should contribute to minimize potential impacts of peak occupancy on the adjacent street network. 6. "Written clarifications as to the nature and extent of the improvements to be undertaken by the applicants in support of their request for the vacation of various public rights - of -way and the granting of encroachment licenses necessitated by the Aspen Mountain PUD." In P &Z's conceptual review of the lodge ccm,ponent of the PUD, you were concerned about whether the various public improvements proposed by the applicants offset the requested right -of -way vacations. As a condition of the endorsement of the requested vacations and various encroachments, both you and Council requested that the applicants identify the specific improvements to b,� ur,dertaken in support. of their request. The applicant has provided the necessary written clarifications on Page 79 of their application, all of which should be made conditions of approval of Preliminary PUD. Final action on the street vacat_ons must be taken by ordinance of City Council..' 7. "The vacation of Dean Street <being conditioned upon the retention of all utility rights.- = public use of the street for circulation purposes, and the submission by the applic €nts of an acceptable maintenance and use agreement between themselves and the Mountain Chalet." The applicants have expressly agreed to realign all utility lines in Dean Street at their own expense and t-o. retain public use of the street for circulation purposes. The applicants have included a recorded maintenance agreement between themselves and Ralph Melville for the north half of vacated Dean Street lying immediately adjacent to the Mountain Chalet. 8. "Each utility franchised in the City signing off on all proposed street vacations so as to ensure that the loss of these rights -of -way will not interfere with each utility's current or future needs." All. utility companies which currently have lines in any of the proposed street vacations have agreed that the loss of these rights-of-way will not interfere with the utilities' current or future needs. The utilities also agree to relocate their current services in the event required, provided, however, that the applicants -issume all costs related to such relocations. Individual letters with respect to this issue have been obtained from each affected utility.. 9. "The applicants' submission of a detailed subdivision plat indicating the specific parceling of the Aspen Mountain PUD site. " r The applicants have submitted a detailed - ubdivision plat as part:: of their preliminary PUD /subdivision submissior, "" The Engineering Department has reviewed this submission and in its memo dated t,dovcmber 6, 19184,.:has identified several: minor items requiring 1;urther clarification. ` hC- - 5 - clarif ication of these issues should be made a condition of preliminary PUD /subdivision approval. 10. "The applicants' sub+rission of Fin' acceptable survey of _ the.. Aspen Mountain PUD site clarifying property descriptions." The City Engineer's comments with respect to this issue are al. so contained in his. attached memo of November 6, 1984,_ and should be included as conditions of Preliminary PUD /subdivision approval. 11. "The applicants' resolution of the various issues raised by the Envirorunental Ileal.th Department in their memorandum of October, 22, 1983, with respect to various specific details of the proposed hotel operation. " Tom Dunlop has 1provided us with the attached memo dated November 6, 1984, in which he indicates that the commitments by the applicants on pages 90 -93 of their submission have. adequately addressed all of his concerns. Each of the commitments'. sh'ould' be made a condition ; of preliminary PUD /subdivision approval. An additional condition which Tom requests is that the applicants obtain an air pollution permit prior to beginning demolition. This permit is required pursuant to State air pollution control regulations. Tom will require that a copy of this permit be furnished to his office prior to commencing demolition on the project. 12. "The reconstruction of existing lodge units being limited to she two hundred seventy -five ( 2'75) units verified pursuant to Section 24-11.2(a) of the Municipal Code, .being accomplished withinfive (5) years of the date of demolition and being restricted to the Aspen Mountain PUD site." Council's conceptual PUD /subdivision approval of the lodge component of the Aspen Mountain PUD, and their award to, the applicants of 172 lodge units, would seam to indicate that they are prepared to acknow3.z,vdge and verify the existence of 275 existing lodge units which may,: be reconstructed pursuant to Section 24 -11.2 (a) . The ability to recon- struct 42 of thest units, however, is tied to the U.S. Bankruptcy Court's approval of the Cantrup purchase and the concurrent settlement of outstanding, litigation between the Cantrup estate and the City of Aspen. Obviously, this project is entirely dependent upon the acquisi- tion of the Cantrup estate and the settlement of the City's outstanding litigation. One further issue with respect to this condition is that the proposed phasing of the project must be coordinated with the use of the GTIP allocation and the reconstruction of actually demolished units. This issue is addressed further in the discussion of phasing elsewhere in this memo. 13. "Written clarification as to the applicants' intentions with respect to ownership of the proposed hotel vis -a -vis how the hotel will be managed." Originally, the applicants for the Aspen Mountain Lodge had anticipated a "condotel" ;=:orm of financing and ownership for the propose(. iiote_l. This approach, however, appears -co h<<t been abandoned in favor r; of more traditional financing techniques. The applicants currently propose to condorniniumize the hotel in order to provide maximum flexibility during the financing process. Specific comments with respect to the applicants' request for condominiurni.zation are contained later in this memorandum. Both P &Z and Council. have expressed concern about the nature of the ownership and operation of the proposed hotel. Specific concerns ranged from the long -term feasibility of the project to the e):per.it�nce and credibility cif_ the hotel operator. The applicant has indicated that "management, of the hotel, will be prc,vided by a nationally kiOWn hotel operator with extensive experience and credibility in the _.. 6 __ .Yq u hotel /conference f.acil.ity industry. " Find selection of the operator is anticipated by year's end. Given the" fact that no specific Code provisions exist with respect to this issue, the Planning Office has no comments to offer on this subject. 14. "The applicants continuing to .investigate solutions to the problem :of increased pedestrian- congestion in the project area, in particular, the move of pedestrians between the proposed hotel, Rubey Park and the. adjacent commercial core. ". The applicants have presented a study by TDA, Associates, their traffic consultants, outli.ning specific improvements to be undertaken by the applicants to minimize pedestrian conflicts. These improvements are summarized on Pages 103 and 107 of the submission. It is important to note that the study concludes that- there will be a relatively minor increase in pedestrian traffic as a result of the lodge's construction. Assumptions which lead to this conclusion are that the occupancy of the completed project is only 360 persons more than the present occupancy and on various trip distribution expecta- tions. Based on the projected traffic and its, distribution, the study finds that adequat=e capacity exists at the critical intersections to handle the pedestrian vehicle traffic movements. 15. "The applicants' participation in the proposed CCLC lodge improvement district, said participation to be on a pro rata basis or on such other basis as the district may determine." Although no further progress with respect to formation of the CCLC improvement district has been made since the date of conceptual review, the applicant remains committed to meeting the requirements of this condition. 16. "The above conditions being met prior to preliminary PUD subdivision approval." The applicant has" clearly addressed each of the preceding 15 conditions as part of their submission. Although there is room for debate as to the adequacy with which conditions 1 I_hrough 3 have been met, we believe that sufficient information is al ailable for you to conduct your preliminary PUD review. 17. "All.. material representations of the applicants'. growth management and conceptual PUD /subdivision applications not specifically referred to above being made a condition of this approval" This catch -all condition should continue to apply at this stage of the review. At the time of Final PUD /subdivision review, the Subdivision Agreement will have to be written so as to specify the nature of each of these representations. 18. "City Council's reservation of the right to amend or otherwise modify the above conditions in conj unction with its conceptual PUD /subdivision review of the remaining components of the Aspen Mountain PUD." This condition is effectively moot, since Council did not modify the lodge component after reviewing the residential component. However, P &Z should establish a similar condition to cover its anticipated review of the Preliminary Residential PUD. 19. "The expiration of Council's conceptual PUD /subdivision approval., pursuant to Section 24 -8.8 of the I1uni.cipal Code, in the event a preliminary PUD/subdivision application is not submitted pursuant to the provisions of Section 24 -8.1.1 within ES.ix (6) months of the dat-..e of this resolution. " Council, at its S- eptember 25, 1984 meet' *'_, moved to amend Condition ir'19 to make it effective six months subsequent to the Council's - 7 - resolution the absence prior to the application endorsing the applicants' eampl.oyee housing proposal. ]:n', . of this amendment, the six month period would have lapsed submission of the applicants'. prel.i.mi. nary PUD /subdivi.sioan for the lodge comr.)onent. This condition is therefore moot. ADDITIONAL PRELIMINARY PUD REQUIREMENTS In addition to the issues arising. out of responding to City Council's conditions of conceptual approval, the applicants and our referral agencies have provided information with respect to several other Preliminary PUD submission requirements. A discussion of these issues follows below. The PUD regulations require submission of a development schedule indicating the date construction of the PUD and its phases will' be begun and completed, including the sequence of construction and phasing of public improvements. The applicants have changed their original proposal and are now coming, forward with a proposal to phase the construction of the lodge component.,.. Ile believe that your decision on whether to permit the proposed phasing should include the following criteria: 1. Can the applicants demonstrate adequate Gr4P allocations,- via the multi -year commitment and the proposed demolitions, to meet the phasing schedule? 2. Can thc� improvements to the neighborhood committed to bv'- the applica nts and incorporated in the Project's GMP scoring be accommodated within the phasing schedule? 3. Have tte applicants adequately addressed all community needs for the first phase such that if the second phase becomes infeasible, we are capable of living with the first phase as a final product? The initial phase of hotel construction would be to build the 285 tinit west wing and to extensively refurbish the Continental Inn, while reducing its unit count from 178 to 162 units, to comply with the overall 447 unit project allocation. The units comprising the west wing allocation consist of the entire 172 unit lodge allocation and 113 existing units to be demolished and reconstructed on the hotel site. The 113 units to be reconstructed consist of 32 units from the Blue Spruce, 29 units from the original Aspen Inn, 36 units from the Aspen Inn addition, and 16 units from the Continental Inn. The ability' to reconstruct the 36 units from the Aspen Inn addition and 6 of the 29 units from the original Aspen Inn is directly tied to the settlement of the litigation between the City and the Cantrup estate. Furtherm�)re, the ability to reconstruct 16 of the units from the Continental Inn will require the removal of those units in order . to qualify pursuant to the reconstruction provision. We believe that additional information should be submitted to demonstrate how these 16 units are to be demolished and what uses will be put in their place so that we can evaluate the effectiveness of the refurbished Continental and insure that the unit total for the complex is in compliance with applicable growth management requirements. In addition to the 285 lodge. units, the west wing is also proposed to contain 11 residential units. Eight of these units are proposed- to come from the 12 unit 700 S. Galena Gr,IP project, with the remaining three units coming from the 40 unit residential reconstruction credit already approved for this project. An evaluation of the appropriateness of an amendment to the 700 S. Galena project in this fashion follows in a subsequent section of this mein or.andum. We have performed a preliminary review of the degree, to which the phasing program complies with the commitments for services and arnenities found in the GMP > application and have made the following findings 1. Proposed water and sc�-aer service improvements anticipated 8 - s` for the entire project will be .provided in Phase IA. 2. The undergrounding of other utilities is proposed to occur on a phased basis:,, commensurate with the construction` of various portions of the PUD. The lodge improvement district upgrades are also proposed to be handled this way so that facilities are not installed and then torn up. 3. The applicants have not clearly .illustrated which trails are to be constructer] in Phase IA. At a minimum, the Dean Street trail and the ski in access to the west wing should be provided, and the appl.icant�> should clarify the phasing for other trails. 4. Some of the conference area (7.000 square feet) has been relocated to the east-wing and;.would not be constructed at this time. The majority (14,000 square feet) of the conference space i_. in the west wing and would be built at this time. 5. The ice-rink at the front of the east wing would be post- poned until the second phase. 6. The total design concept for tie entire lodge site will not be achieved at one time. 7. While the total number of parking spaces proposed in connection with the first phase is more than adequate, approximately 54 of the'1,�e spaces are surface spaces to be provided on the adjacent second phase site. The lodge GMP application was scored in part based on the representation that all parking would be provided subgrade. The P &Z must address whether- the provision of ongrade parking as a partial solution during operation of the first phase is acceptable and whether or not the City can live with continued provision of surface parking in the event construction of the second phase is not commenced. 8. The applicants have stated that the drainage solution for the lodge cannot be formulated until the geologic study for the Top of Mill site is complete, since the drainage require - ments for the two sites are interrelated. Since the Top of Mill project is part of a later construction phase, it is unclear how the first phase of the lodge will handle its own drainage and how, moreover, the project will meet its commitment to improve drainage for the neighborhood, . if the second phase is not constructed. We feel that, at a minimum, adequate provision for Phase lA drainage should be made by the applicants at this time, and that a commitment in the form of bonding or other acceptable guarantees be made to insure an overall drainage solution for the area. Beyond these technical questions, the final decision with regard to phasing is whether you would be satisfied with a permanent design solution of Phase lA being accomplished and the other construction being found infeasible. P &Z should review the project's architecture . and site design with an eye toward compatiblity, scale and image, based on only the west wing being completed. In the opinion of the Planning Office, this possibility is an acceptable one, particularly in light of the ases currently in place on the west wing site, which would be substantially improved by the proposed hotel development. FAowever, P &Z should recognize that one major justification for the award of the full. 172 unit quota to the applicants was that the entire PUD environment would be improved and the construction imIDacts on Aspen would be confined to an identified time period. The applicants still propose to ,ave 447 lodge. units in operation at the end of. Phase IA, yet Aspen will be left with the Continental inn still in place, albeit a refurbished facility, many of tiae public amenities unbuilt, and no guarantee that subsequent phases will ever occur. .1f Phase II does occur., it will result in a second construction period. However.. - 9 - �l it it does not occur, we mist identify a method for securing the community that all improvements anticipated-from awarding a multi -year allocation will be obtained. Without such a firm guarantee, we would have to find the pliasi.ng program to be pan.; unacceptable approach f or construction of the PUD. Beyond the issue of phasing, Preliminary PUD requires that you perform detailed reviews of_- both architecture and landscaping. I believe that detailed ar chi tectural concerns can be .fully addressed as part of reviewing compliance with conceptual Co:�:c?itions 1 through 3, and therefore no additional information is provided herein. For your information, Jim Rolland has reviewed the landscape plan and believes it to be a very attractive and workable plan which would measurably improve the appearance of this section of downtown Aspen as well as "the quality of the overall project." Jir: goes on to note that while a significant number. of large spruce trees currently existing on the site are to be retained,- eight existing spruce trees which he feels to be of particular significance are to be removed. Given the potential emotional public outcry that this removal might generate, Jim suggests that we negotiate with . the applicants to relocate and thereby retain as many of these eight trees as possible. In addition, Jim outlines several additional conditions in his review comments which should be incorporated as conditions of preliminary ?UD /subdivision approval. Jay Hammond has addressed a variety of technical issues in his considera- tion of the utilities, roads and other enc;ineering concerns. None of these issues appears to require any detailed consideration by P &7, with the exception o: the Summit Street right -of -way question, which is more appropriately a concern of the Top of Mill project. The technical issues raised by Jay can appropriately be handled as conditions of Preliminary PUD approval. Jim titilson has requested that the applicants clarify the extent, of the refurbishing to be _undertaken with respect to the Continental Inn. It is his intent, I- believe, that improvements with respect to life, health and safety be required as a condition of issuance of a building permit. A condit_Lon of preliminary PUD /subdiv;:tiicn approval, therefore, should be the subi-Assion of a detailed plan for the refurbishing of the Continental with Jim's condition for safety improvements being - included as part of the final PUD /subdivision agreement. A last issue with respect to the Preliminary PUD arises from the action by Council with respect to the commercial development application for 4,500 square feet of non - accessory commercial space within the east wing of the lodge. Council was not recopti.ve to the arguments for granting an excess allocation to the project and only granted it 3,000 square feet, this year's quota. Therefore, we recommend that the applicants revise the lodge development program to reflect the approved allocation and if, at some future date, an additional allocation is received, submit a PUD amendment for this added space. OTHER 'ASSOCIATED REV IEVJS The applicants have requested that we also address two other reviews at this time, as follows: 1. Wheeler Viewplane; and 2. Lodge a.nd residential condominiumization of the hotel com, ponent. In addition, we believe that we should give the applicant some feedback with respect to the anticipated submission of a GMP ammo rent for the prof ect. 1. viewp1ane The issue of Whee "Ier Viewplane review was originally addressed during the conceptual rev .cw of both components ol, the PUD when the Engineering Department commented that the buildings ai.?)peared to protrude into the - 10 - C adopted viewplane. The review was not completed at that time, in order to allow the Engineering Department to determine whether the viewplane had been accurately mapped and codified. The basic issue regarding the viewplane is whether it is the intent. of this review process to principally addres.3 buildings which protrude into the foreground or to also address buildings up against the mountain itself in the background of the view. In response to this question, the applicants submitted a viewplane analysis in their conceptual submission for the residential component i.11ustrating that by carrying the viewplane into the lodge district, where the topography rises, the ground itself penetrates the viewplane in the vicinity of Summit Street. The applicant'--s further state that: "We believe that the City's intent in adopting the view planes was to establish a review procedure to examine, on a case by ca-se basis, proposals for building sites ,rear the origin of the view plane, where construction to the full height allowed under zoning could block out all, or a significant. 'portion, of the view of the mountains beyond. The angle of the, 1heeler Opera House View Plane was chosen, we believe, in response to potential development on the sites between the Opera House and Wagner Parr, w1lich could have had a dramatic impact on the vi.-.c-,.w from t1ic T.Theeler of the mountain beyond, rather than in resonse to development in the Lodge District. City mapping of the v iewplanes on adopted zoning maps supports this position. `I-ie viewplanes historically have been terminated on the mapping when maximum heights permitted under zoning in the downtown area are reached." Both the City Engineer and the Planning Office generally concur with the applicants' analysis. Jay has checked the viewplane calcu.lati.ens and found them to be correct. Moreover, from the standpoint of intent, it seems clear that the reason for having a viewplane review is to protect the foreground view of the mountain. from designated parks and other public places. Therefore, since the °:.lodge building is clearly outside of the T ^1heeler Viewplane foreground and will not obstruct the view of Aspen Mountain from a public place - we recommend approval of the viewplane review. 2. Condom iniumizat:ion The proposal to condominiumize the hotel component should be reviewed as per Section 20--22 of the Code for the residential units in the lodge and 20 -23 for the lodge units. First, as regards the lodge units, the applicants have submitted the information necessary to review the request, including the following a. Lodge services will exceed any provided by the Aspen and Continental Inns, including 24 hours per day, seven days a week management and maintenance services, airport transporation, and the entire amenity package identified in the GMP process. b. Employee housing exceeding that currently available in the various facilities and meeting GMP commitments. C. Upgrading and improvements on the order. of $49,000,000 for Phase IA, $1,000,000 for the Continental Inn and $31,000,000 for Phase II. ; The condominium declarations submitted as Appendix D to the application include in Section 13 a recitation of the restrictions upon personal use of the units bV the owners and also address other r.equire;nents of Section 20 -23. TIe, therefore, believe that the applicants have complied with the provisions of Section 20 -- -23, with t'lie exception of Subsection (A)(6)(c) which requires that promissoty note (or some alternate method acceptable to Council) i, submitted to the City, secured by a trust deed, i,-1-1 the ax,iount of the physical upgradiriq of the lodge facility. The applicant should h ;� required to address 1- -his problE9 before you make a recommendation to Council on condorii.u,,,Azation. -- 11 -- The applicants have not submitted adequate information to address the requirements of residential condominijmization. I have been informed that the residential units are not likely to bu ima.naged as part of :tne lodge nor to be used as transient lodgincx.' Therefore, it is clear that to be condominium, ized, they must meet the requirements of Section 20 -22 and not Section 20 -23 of the Code. The problem in meeting the requirements of Section 20 -22 comes into play for the reconstructed units, not for the new units which gained an allocation at 700 S. Galena. The condomiumization of the recon- structed units requires (20- 22(c)) the applicant to demonstrate to 'P &Z that approval will not reduce the supply of lo�.r and moderate income housing. The applicants, as part of the residential com.por►ent, have provided us with an inventory of all employee housing on the site which is to be demolished and have committed to replacement of that. hou ing as part of their employee housing program. Therefore, any action on °t-he condominium, ization of the residential units must be conditioned upon a demonstration by the aplicants in their final employee housing commit- ments, that no affordable housing is being lost by this development. Another question you must answer is whether the six month minimum lease restriction should apply to the residential units. The Code does not differentiate between units which are condominium, ized in ,our residential zones as opposed to those in the lodge district. Apparenl ,ly, there has been G prior policy to not apply this restriction in ; the lodge district. Your comments on the appropriateness of the six month lease restriction should accompany any action you take on the condo - miniumization of the residences. , 3. GMP Amendment There are numerous aspects of the lodge which will require your consideration of a GAP amendment for the project. To date, no vuch amendment has been submitted, but we feel it is appropriate to Guide the applicants as to which changes from the original concept you w6uld be willing to ap�arove. First of all, the applicants' revisions to the lodge's architecture and site design have resulted in an altered project meeting many. of the objectives voiced during the scoring process. Since the charges in this regard are in direct response to the requests of P' &Z and Council, we believe that this type of amendment is well within the intent of our Code. On the other hand, the proposed phasing program represents a deviation from the commitments originally made by the applicants as to the immediate upgrading of the entire site and results in a phased provision of various public amenities, even though all allocated units are built at once. P &Z should come to a conclusion --,s to the appropraateness of the many changes associated with the project's phasing and incorporate these into a rescoring of the application. The final major change associated with the project is the movement of eight units from 700 S. Galena to the went wing of the lodge. In our opinion, this type of change is not eligible for amendment but instead constitutes. 2 entirely new residential GMP applications (one b��i.ng four units at 700 S. Galena, the other being eight units in the 'Lodge) . We believe that the 12 unit allocation to 700 S. Galena is not a "black box" which can be moved around on the PUD or otherwise signifi- cantly altered. `i`he Code refers to modification of applications "in insubstantial part and for purposes of clarification or technical correction only" and then provides that you rescore any substantial changes to an a �plicati.on. If you score the appli cation above ..the, threshold, you -, are then asked to "make recommendations to the City Council as to _t hre appropriateness of the amen&ie.nts to the original proposal and:;: i urther conditions of approval which they appl.icant -� ' 2 �- 0 shall meet." 0 We suggest that y.qu indicate to the applicant that,while the proposed change to 700 S. Galena might still score above the threshold, it is an inappropriate use of the amendment :procedure and would set a dangerous precedent for other GMP competitions. we frequently find ourselves dealing with applicants who want to make these kinds of major changes to approved projects, and f ear f or what it would do to .the process to allow such changes. Pleas4 remember that you score a GMP proposal in a public hearing but that an amendment is not a public hearing. Therefore, the reliance placed upon the original process would be endangered if we allow these _types of changes to occur through subsequent reviews. SUMMARY in conclusion, the Planning Office has identified a wide mariety of issues to be resolved during the Preliminary PUD review process, ranging from the 1;ack of total compliance with conceptual conditions, to items not totally resolved relative to the current review process. In our opinion, the most signfiicant of these problems are as follows: 1. The applicants have not fully complied with Conditions 1 through 3 of Council's conceptual approval. COndition 1 requires somewhat of a subjective- eval ulation of the project's architecture and site design. Conditions 2 and 3 are more techniclal in nature, but require some interpretation by P &Z of the intent- of the Council's limitation versus the letter of what was written. 14hile t'zere may be room within the present design for P&Z to find .compliance of the project with Council's resolution, we suagest that you also specifical- ly indicate to Council the areas where the project is inconsistent with their requirements so the elected officials can finally evaluate the project's design. 2. The app-1. icants are proposing several significant amendments to the . o.riginal concept which v ill require a rescori.ng of the project by P &Z. The most significant of the changes are associated with the applicants' phased development program. The phasing means that some of the amenities and services originally proposed to be provided will be delayed. The phasing also results in the possibility that the Continental Inn will_ be r_efurbi. shed, but never torn down, and that the total site design and architectural concept for the PUD will never be accomplished. The Planning Office finds this approach to be quite inconsistent with much of our rationale for recommending approval of a multi -year allocation to the project. If P &Z finds the phasing program to be "inappropriate" we believe the Code gives you the Authority to recommend to Council that this amencl:ient not be granted. Iiowever, if you are willing to accept the phasing program for its immediate benefits to the west wing and its promised improvements to the remainder of the site, then you should condition your recommended approval on the provision of adequate guarantees that the applicants' commitments to the neighborhood will be accomplished, regardless of the status of later construction phases. As to the amendment of 700 S. Galena, the Planning Office is firmly convinced that no such change should be allowed without.having the applicants compete again for a residential allocation. WE! believe any other decision will be injurious to our ;ompctiti.on process and is therefore inadvisable at this time 3. The remaining issues consist "of a variety of technical. quetsio: c. which we believe can_,.Jy, resolved through f ur. -:Fier commitments by the applicants or added information by their 13 - representatives. These iSSLIC'S should be individually addressed by P&Z, and the Plannil,,g Office will continue to c0f"PiI le its list of conditions for any eventual action you take. — 14 — �+.- .•c'.'n:w"88�' Lxa• �'.'4Li�m�.ir�w. w.m.a�een:..if;. 48 :at.1w.P.s.�a.:r:Sc'�.. l..c�yw'u:. $ �. Ua..: u". x. a� ..::..�:N:.*.'.4rvvJw��.t..+s.1 :.L.aia:�w�!'�;:�'ram.lxwr... ,� ,,,... rsa» x., ra'. �,.,, r? w,: �< ti. .i"�.,,w�.:•. "`..:uyu�rx..`ai.1 MEMORANDUM TO: Alan Richman, Planning Director FROM: Jay Hammond, City Engineer.—A- I ATE: November G, 1984 RE: Aspen Mountain Lodge Preliminary Subdivision and P.U.D. IIaving reviewed the Aspen Mountain Subdivision preliminary submission, the City Engi nee ring .Department -would offer a number of observations. You may recall'my�imemorandum to Sunny Vann of November 15, 1983, regarding the conceptual application for this project. In it, I spoke, occasionally glowingly, of the opportu- nities presented by this project in terms of platting, circulation, utilities and public amenities. Preliminary review allows us the . opportunity to assess where some of these opportunities have progressed. In order to simplify some comparison between the prior discussion in the November 15 memo, I will generally follow its format in an analysis of the preliminary plan. As I understand, the current submission is: intended only to address subdivision arid Planned Unit Development (P. U. D.) issues as they relate to the lodge portion of the project. The preliminary submission documents, however, address several items relative to the residential Top of Mill project, particularly in the plat language. To the exteit that this information raises questions about that portion of the site, I have included comments at this time. 1. Water The preliminary submission continues to propose improvements to the system including the 12 inch main in Galena. The following items should be noted: a. The 12 inch main in Galena crosses the sewer lipe at three locations and will have to respect proper separation or the sewer line will have to be encased at the developer's expense. b. The 12" main should have intermittent isolation valving. C. The South Monarch interconnect should be noted on the proposed utilities plan. d. . Hydrant locations on the plan do not seem to correlate with the recommendations of the Rolf Jensen and Associates report. -� f :s- p Page Two Aspen Mountain Lodge Preliminary Subdivision and P.U.D. November G, 1984 2. Sewer- - The preliminary plan would appear to be in compliance with the representations at conceptual. The specific plan is subject to comment by the Sanitation District although we would note the following: Discussion of the proposed vacation of Dean Street would' appear to preclude utility usage. Sewer easements must be maintained where needed in Dean. 3. Storm Drainage - The preliminary submission references the conceptual documents regarding storm facilities and speaks of: on -site detention of developed flows. It is somewhat vague, however, regarding the specific location of detention facilities. We would recommend the applicant be required ,10 address the following: a. Specific location of detention ponding. The application mentions invest4gation of landscape ponds and underground parking structures. The plan, however, does not address location acid appears to leave little roo;-k: for ponding. b. Location and extent of connections to the storm sewer as well as on- site culverting, french drains, drywells, etc. 4. Electric /Commun.ications - The applicants are propcosi.ng relocation, of the various power and communications u -i:I. t -10S to underground alignments in the street Rights-of-Way paralleling sewer and water lines. In most cases, this should not be a problem but we would note the following: a. In Durant the plan would propose power, phoney and cable TV lines in close proximity and parallel to an exist -ing large diameter water transmission main. A detailed design solution must address hog,, this will be accomplished so as not to interfere with access for maintenance of the water line. b. Power or communication utilities under sidewalks or curb'and gutter must be placed in conduit. c, Routing of utilities in Durant could effectively isolate the I.lountain Chalet and the construction phasing plan should address this aspect. The applicants should be required to address all such details in the form of detail design and scheduling at final plat. '!.fn .. ri S.S T.. �' "i' .�: b . -.F:+' '^IM1 .�_ T^f' YS.« R l"z � k F _ _ _ -��• y�, .� ,.. «u ..,. - .,,� ,.. R i., * >as,�S�. C.- '�-F .r,. x. ®S.. s:ha �: r�. :_ve..:i1,.�., .. .. .. ..., �°,..tY.s.a. sua r:�. �` r'-...., aa: �„ �e. ilc• ,,._.,_.,..._,��....�r»�a..c�.. i..un- 2;,......�.'1.+ti�;w .. .,. P Page 3 Aspen Mountain Lodge Preliminary Subdivision and P.U.D. November 6,1984 B. Fire Prot iQom_ This matter is, of course, subject to comment by the Fi,:e Department and Fire Marshal as to the appropriateness and location of the various equipment proposed as well as whether it adequately replaces vehicular access to the interior courtyards. We have noted the apparent discrepancies in the recommended hydrant locations. C. Roads /C.irculat gnZJAr incr The preliminary plan remains true t:o� the conceptual submissi +3n proposing reconstruction of most streets within the project as well as new sidewalks, curb and gutter, and crosswalks. 1. Circulation remains improved by a minimization of driveway entrance conflicts and ;x: good internal route. Tile following concerns should be noted,, hog. ever: a. The easement proposed for- Summit Street is minimal at 25 feet leaving a narrow street for two -way circulation and virtually no setbacks to accommodate snow removal or trash facilities. Engineering would continue to maintain the potential need for Summit Street as a full fledged circulation route a:nd would suggest at a mLI)_Jmum further physical setback of structures from the proposed easement.. b. Platting should indicate proposed temporary public roadways during construction. C. [cording of the proposed vacation ordinance in Appendix E should be amended t -o reflect the reservation of surface and circulation uses by the public. 2. Parking remains in compliance with conceptual represent- ations although it has been reduced somewhat in proportion to reductions in the lodge size'. We would continue to support requirement of the various measures proposed by the applicant including: a. Courtesy Vans b. Valet Parking C. Employee shuttles and transit passes. Page 4 Aspen mountain Lodge Preliminary Subdivision and P.U.D. November 6, 1984 D. CConc u Condominiumization approval should be contingent on submission of adequate condominium mapping following substantial completion of the structures. E. Street Yaca -Us 1. Dean Street - Vacation of the two blocks of Dean from Galena to Monarch should be contingent on the following: a. Reservation of surface and circulation use by the public. (The current proposed ordinance would not appear to do so.) b. Rerouting of. the various utilities to the satisfaction of the City Departments and various franchises. Possible conflicts in Durant, for instance, if not addr,:essed in detail to the satisfaction of the entities involved, may suggest permanent relocation of power /co- mmuj:i:cati:on lines in conduit through the subg rade structure in Dean Street. F. Encroa.chmenta The language in the City dedication on page two of the preliminary plat regarding the encroachments into South Mill is entirely vague. idowhere does the submission define in specific ;terms the extent of the encroachments that will be needed. -It would seem appropriate to define these. areas dimensionally on the plat documents. G. Q structi on Schedule and Phasing The preliminary submission examines in some further detail a phased approach to the lodge construction. The applicants now propose construction of the west wing in the first phase with demolition of other structures excluding the Continental Inn. Considerable detail in this area remains to be worked out and we would suggest the following requirements at Final Plat. 1. Specific design and location of pedestrian barricades and walkway structures. 2. Traffic and pedestrian circulation routes during constr- uction. 3. An agreement on the part of the applicants to properly 77, �•a,.°*r s+-�2C m• *n•r,, %"'S'.e*< ""� ..'k r;�.- *m.•.: fie- "**,w^ �i .n^^t na+is -.+s,; `rp4't,"k,.,y°` �;;,c.^��° s .n-... ,.�+ 'eR'Ss»^^. Y v i 1:" , r F"'S"�r°i.: 4" r Page 5 Aspen Mountain Lodge Preliminary Subdivision and P.U.D. November 6, 1984 maintain the barricade and walkway system throughout the course of construction including repairs and snow removal..; 4. Provision of a plan addressing site access and material and equipment storage areas during .construction. 5. Further scheduling and design 'detail involving the various utilities. In the event alignment problems remain, we may yet need to maintain permanent utility locations within Dean Street. 6. Further detail regarding the limits of excavation, construction easements, and shoring needs. 7. Proposed landscaping of areas where demolition is contemplated without immediate reconstruction. H. Vig! W Plane The preliminary documents do not address the view plane issue any further. It is apparently -the applicant's assertion, and we are inclined to agree as detailed in the ',November 15 memorandum, that view plane consideration is not appropriate at this -site. 1. L!! z Lt: t..rig. Plattinc! of the Aspen Mountain Lodge does much to "clean uTfl survey and rights -of -way in the area. Several wedges of land being dedicated by the applicants will help us in straightening existing streets and a laud trade on South Galena serves to improve that right-of.-way significantly. Several minor items require clarification: 1. Open Space - The plat and dedication language refers to public open space easements on Lot 1 that are not apparent on the plat drawings. The applicants should indicate at least the approximate locations and square footages of these areas. 2. The documents also refer to Ski Company easements and the Pop of mill trail which arc not shown on this plat. These items should be clearly delineated on the residential application. 3. Description language on the City Dedication certificate regarding proposed encroachments is excessively vague. T'"' nS - ''� - . ;>.4:ui.o...:iY+.:f�ev.[.....:. . >..w. ew. w._..._.;•. :S.i..ri,..'�..a._L.,...3..�..ro _X._.,..adi.� -isr. c2s.s. c... .,. �a: ... ar: l... wt_.<.. r•. ?:,., a.. Ya.... w: r. r. �� ..,f.:taa....4.�.pc�..:.x..... �.r1_..;�.+.%,o.Md.:i,::.� Page 6 Aspen fountain Lodge.Preliminary Subdivision and P.U.D. November 6, 1984 � zzclus�.on The preliminary:.*submission for the Aspen Mountain Lodge Subdivision and P.U.D. is generally responsive to concerns raised subsequent to conceptual review. Key items of concern to this office include: Continued reservation of utility rights in the various vacated areas pending - final approval and acceptance of detail design solutions by the various utilities. - Exploration of providing a wider road easement at the Summit Street extension. Further:: detail regarding construction scheduling an-d provision. of temporary circulation and pedestrain facilities. - Indication of specific location of storm detention and control structures. JH /co /Aspenl4tLodge I r I p r` • C•i k A � �:.+ �� � � o �--� � R S: C . 4 vim+. �J ti �,,,� - "�- - -,---- - Z ` c It�f \mow ce- (� n `� Ste= S • - -- -- - - -'� - � C `.. -��_ _(�°_ _4-.�� � -_ •'�' \ . _.O � _ !� -C...r � °--�i S -- - ` 4A �a • J, w � - - - -- ��� - - - - - -- - - - - - - -- -- - -- �. - -- - - -- - - - - - -= �� _�. 9 - 1- j I ,® , \ � L C ?' S ��i -ups � - :.�.�q� �✓�r � 'w4� -~ — � - - -- -- - -. - - -- - - -- - -- -- -- -- _ _ -.- ae cam. -asc a, . j o -&J - �. c� c-� J a L�.� S�'l� 4 2 _� j� cJ ✓lni R - . 11 '1 . 'loo � _ � �.�. A �....� �C-� � \..n�t..� � �7--� `� � v-�^•� ('ac<<�,.,��- tAV�� -=---- - - - - -- - - -- - - - - -- _ \ � L C ?' S ��i -ups � - :.�.�q� �✓�r � 'w4� -~ — � - - -- -- - -. - - -- - - -- - -- -- -- -- _ _ -.- ae cam. -asc a, . j o -&J - �. c� c-� J a L�.� S�'l� C �%Nu13 0 �s =tth g a l e-n a,os -t re e t a s p c o lso r -d o�8'1611 303 °9 Sw 020 M E M O R A N D U M TO: PLANNING DEPARTMENT FROM: JIM HOLLAND, Director of Parks DATE: NOVEMBER 15, 1984 RE: REVIEW CONDZEN.TS - "THE ASPEN LODGE" - Existing Tree Location& Removal Plan (L5) - Landscape Development Plan (L2) The most popular question that comes my direction regarding proposed development of the Aspen Lodge property is "Wow! That property has a whole bunch of big beautiful spruce on it . . . the City's not going to let them just cut those down, are they ?" That's part of the issue I'm addressing now. I have reviewed the plans, and I have examined all the trees on the site. The current character of the site is definitely dominated by about 20 existing large spruce. The proposed Landscape Development Plan recently submitted appears to be for all practical purposes a very attractive and workable plan which would measurably improve the appearance of that section of downtown Aspen, as well as "the quality of the overall project (Sec.24- 8.16)." While the "new" prevailing character of the land- scaping around the Lodge site would tend to hinge on the quality and size of the proposed Green Ash plantings, which could be excep- tionally attractive, it's still understandably difficult for me to write -off the significant contribution that those existing spruce make to the natural beauty of this area. While Sec.13 -76 of the Aspen Code regarding removal of trees does briefly address this issue, in my interpretation it hardly justifies denial of a request for re- moval of these trees in this case. Obviously, the majority of exist- ing plant material on the site has to be moved because of major grade changes or because it's simply not feasible to work around them, some are worth the financial investment.in transplanting, some are not. It does establish however, especially in the light that this issue might generate some pretty emotional public input, a reasonable basis for negotiations. t, C� 0 On an attached copy of Phase l Plan L5, I have identified 8 existing spruce which have been designated for "removal as opposed to "transplants ". If they too were transplants for on -site use, I would have no problem with the Plan, but because they are such nice trees, I would recommend reconsideration in effort to save these 8 trees. Otherwise, my only other comments at this time are: - Please spec all Populus Auustifolia as "cottonless ". - What planting size on the Fraxinus Pennsylvanica? Consider - their importance to the streetscape, I hope you're talking 3-12-4" B &B. - The Scrub Oak clumps noted on the plan are actually Service - berry; the 7" Aspen noted at the N.W. corner of the Mountain Chalet building is a spruce. Considering the really Door location of the existing 30" cottonwood nearest the corner of Durant & Galena Streets, I would be very understanding of a request for its removal .should it become a design hazard. 34 MEMORANDUM TO: Alan Richman, Acting Director FROM: Sunny Vann RE: Aspen Mountain Lodge Preliminary PUD /subdivision application /3 DATE: November/X, 1984 I. GENERAL Outlined below are some general comments and observations with respect to this ap 7ubsequent on. A more detailed analysis is provided ' sections of this memorandum. A. This application requests preliminary PUD /subdivision approval for the lodge component for the Aspen Mountain PUD. Permission to phase prelimin iew was expressly granted by Council at their August , ] 4 eting ( see Attachment #6, File #5 f or the minutes of th eti ng) . B. The application also requests approval to condominiumize the Aspen Mountain Lodge units and 's, the- refQre, subje t to the requirements o S ctio 20- � e d Z° f n 23 . C. Additional approvals are required in conjunction with the lodge component of the PUD (e.g. street vacations, right -of -way dedica- tions, encroachment licenses, etc.) . These requests, however, will require an Ordinance of City Council to accomplish and, therefore, should be addressed concurrently with final PUD/subdi- vision review. P &Z and Council have reviewed these requests in conjunction with the applicants' conceptual submissions and have agreed subject to various conditions (see Council's conceptual PUD /subdivision resolution, Attachment #55, File #2) . D. The applic ts� ployee housing commitment for the entire Aspen Mountain PUD has been approved by the P &Z and Council subject to conditions (see Attachment #77, File #3) . A recalculation of the PUD's employee housing generatior� w ' ll most likely be required, however, as a result of the lodge component's development program. The applicants propose to submit their revised employee housing commitment for the lodge component concurrent with the submission of the preliminary PUD /subdivision application for the residential components of the PUD. E. A number of changes with respect to the lodge component have occurred subsequent to P &Z's and Council's conceptual review. The major changes are summarized below. 1. The basic site design and architecture of the lodge component has been revised at Council's request. These revisions have not been reviewed by the P &Z but are consistent, I believe, with the Commission's request for addit' nal a chit changes to further mitigate the to ge impact .mere =�e Attachment #30, File #2, P &Z's conceptual PUD /subdivision resolution). 2. Programmatically, the lodge conceptual PUD /subdivision approval has been revised to include 8 of the 12 residential elling units approved in conjunction with the 700 S. Galena GMP application. Essentially, the applicants wish to transfer the units from the 700 SGalena site to the lodge 4/ in order to enhance marketability- and reduce neighborhood opposition to the approved residential GMP project. The applicants wish to accomplish this transfer via amendments to the residential and lodge GMP approvals. The remaining four residential dwelling units of the applicants' 700 S. Galena allocation would be constructed on the South Galena site as two dupl xes. Revised architecture and site design for thid -g 4j-eet will be submitted with the residential preliminary PUD /subdivision submission (for detail discussion of this change, please rexmz= Pa 3) of the /7 applicants' to ge preliminary PUD /subdivision app . e/-+ Ar 1-�17 ,r�i iU�!�'�* .� -; �r�u�.f,�,.,,�•°�� /ti�ti�vr�a� ��= '^�i.�. %i�tac /tea- 'o, �.ydrti, 3. Financial and market considerations have caused the applicants to adopt a phasing plan f or the hotel. As opposed to i HT�TrT��7 -TT 1T ►- 1 "�_v'�T�_� �°v�- �'wwv�a7� .c�.�w �P — — - - — _ _ — _ _ _ - j S �'2 r1A constructing the entire hotel at once, the applicants now propose a first phase, referred to as Phase 1A, which consists of th west wing of the hotel. The Continental .Inn Amut'd be extensively refurbished and operated for a period of up to five years at which time construction of the remainder of the hotel would commence. A fundamental question which the P &Z should address with respect to this change is whether or not we can live with only the west wing in the event construction of the remainder of the hotel proves unfeasible. Because of the phasing, a variety of issues crop up with respect to infrastructure, parking, etc. A more detailed discussion of these pro bl ems i s provided in subsequent sections. II. PRELIMINARY PUD /SUBDIV IS ION REVIEW Outlined below are specific comments with respect to the applicants' lodge preliminary PUD /subdivision s mission. For simplicity, -,I have organized my comments into - esce^+ two categories: mm nts with respect to Council's conditions of conceptual, appr 2) r issues an A reminder - P &Z mu s ,oprover disapprove, orlprove with conditions th-ts application. A. My comments with respect to the applicants' response to Council's conditions of conceptual approval are provided below. Although I have not repeated Council's conditions, my comments a organized in the same order that the conditions appear in Counc r1n r esolution granting conceptual PUD /subdivision approval /ee Attachment #.55, File #2 for a copy of this resolution) . 1. This condition reflects Council's concern with respect to the overall scale of the lodge component. By requesting that,, architecturally, �S project loo ike two separate - edges, I believ Council felt that the end result would-be more consisten with Aspen's so called village scale. review of the revised architecture -w t indica4z� 5 • that, while they have broken the project dow in stinct building components, the same architectura X�a lle utilized throughout the entire lodge. The lodge employs fferent architectural organizations of facade, window and balcony treatment for each major hotel wing and the exterior surfaces and fa ca detail have been designed to: G accept further visual de as 'on utilizi changes in color /f and stain, as well as surface textu e. To the casual observer, the lodge component will clearly appear to have been designed by one individual a6y #Dst likely, will read as one extensive project. Frankly, however, I think the architecture is quite effective�nd unless Council continues to insist bdiff erent architectural styles be utilized to make the lodge component appear as two distinct hotels, P &Z should approve the architectural L_et -s of this component as submitted. Technically speaking, I believe you could argue that the applicants have not strictly complied with the spirit and intent of this condition. This issue, however, is extremely subjective and I am sure that those opposed to the project will continued to argue that its scale (i.e., the fact th t covers ms's several city blocks and appears to be essentially one project) is inconsistent with the village scale of Aspen. I ugge t the ou discuss the subjectivity of this condition add allow P &Z and Council to make up their own mind. includ� however, that technically, it probably doesn't comply with the condition. 2. The approved external ' of 310,275 sq. ft. for the lodge component of the Aspen Mountain PUD (i.e., Lot 1) esents 1 a reduction extracted by Council from the applican s riginal conceptual submission. Based on the applicants' comments in their preliminary PUD /subdivision a lication, it is clear that they assumed that this reduced = constituted, for all practical purpos s� a useable internal 'of the building. As a result of the lodges revised architecture, however, as much as 25,000 sq.ft. of covered external areas around the perimeter of th hotel included in the lodges external FAR. While some of this square footage may be excluded as a .result. of the subjective nature of this FAR provision, it is clear that the external of the hotel exceeds the 310,275 sq. ft. provided for in Condition #2. The applicants contend that it was clear in the numerous discussion 'th Council which led to the several reductions i in the 1od es square footage that the external areas to the building were not included in the calculations of the floor area presented to the Council. To my knowledge, this distinction was never openly discussed a 6a be epresents an admittedly feeble attempt to address thi particular problem. The two basic questions here ar ) Is the approximately 25,000 sq. ft. "necessary to the function of the building" and, therefore, required to be included in external FAR and 2) Did Council understand that their maximum external PAr�eg4g--' would be exceeded as a res It of changes in the architectural design of �. esig the lodge4,�Wi.th respect to the first question, I believe the Building Department will clearly include a portion of the 25,000 sq. ft. in the calculation of the external 4�of the lodge component. With respect to the second question, I believe Council was attempting to obtain a significant reduction in the overall mass of the building A* and that the extracted reduction resulted in an -Pt for the OM lodge site (i.e., Lot 1) to one to one. The inclusion of a part of this 25,000 sq. ft. in the calculation of external FAR for the lodge will most likely significantly increase the effective external FAR for the lodge component. As a result, the applicants clearly have not complied with the external4��restriction"';A� lo component as outlined in Condition. In addition to the disputed 25,000 sq. ft., the applicants also propose to transfer approximately 7,260 sq. ft. of the �w approved for the 700 S. Galena component to the revised hotel. This transfer is designed to reduce the FAR of the 700 S. Galena component, thereby reducing public opposition to this project, and to construct a portion of the approved units internal to the hotel. It should also be pointed out, that both the size of the overall PUD site as well as the size of Lot 1 have changed since conceptual approval. Specifically, the overall site is approximately 1,600 sq. ft. smaller as a result of the realignment of Galena Street and various street right of -way dedications. Lot 1, however, has increased somewhat in size as a result of the transfer of site area from Lot 4 neces- Are IX411� sitated by the Galena Street realignment. 4n t*a ct of increasing the external floor area of the lodge component and increasing the size of Lot 1 is an increase in the external FAR ratio of Lot 1 from 1.20maeymmo approximately 1.4 %.. The extent of the increase, however, is subject to an exact calculation of how much of the approximately 25,000 sq. ft of extern is in fact subject to inclusioneW n With respect to the approved external of the entire PUD, the applicants proport to be consistent with this condition. However, once again, the inclusion of the approximately 25,000 sq. ft and the overall reduction in the entire PUD site area will result in the applicants not meeting this condition. In 1, the applicants have not met Condition in their preliminary PUD /subdivision submission. Their arguments, however, do have merit in that they have attempted to meet the spirit of what Council has been trying to achieve, that is a reduction in the apparent mass of the lodge component 11 0 of the PUD. A strict interpretation of the condition, however, would result in further reduc ions in the mass of the lodge. My suggestion,. -#-1 n and let P &Z and Council resolve it. E 11 si rea will most likely result in the plicants technically not meetin this condition. In a nut shell, the a'J>pliqdnts have not met Condition 2 in their preliminary PUD /su iv %thaey bmission. Their arguments, however, do have m it in have attempted to meet the spirit of w t Council has been ing to achieve, that is a reduct' n in the apparent mass of %el ge c omponent of the P D. A strict interpretation ocondition, howevof, would result in further reductions in th�emass of thg/lodge. My ' suggestion, take a neutral position an2l,,let &Z and Council resolve it. 4. The Fire Department was concerned about access to the internal courtyards of the proposed lodge in its review of the applicants' conceptual submission. The Aopon Fire Chief referred the applican s consultant, a specialist in fire protection engineering, to the Denver Fire Prevention Burea The - ^_..L Bureau commented with respect to the design of the hotel and to the proposed fire prevention provisions to be incorporated. In the bsenc.e of any, specific objection from the Aspen Fire Department, it wow uld- appear that Condition *3 has been A satisfactorily addressed. The recommendations of the Denver Fire Prevention Bureau Vee Page 70, preliminary PUD /sub- division submission) and the specific measures proposed by the applicants� ire protection consultant �iee Page 7� -pr- � �d_� prT� /subdivision submissi m;� should be made conditions Celiminary PUD /subdivision approval. The n Engineeri epartmen , however, not n its review of this applica ion t di screpa c�1s i th respect to the location .4number of f' hydrants in the immediate site area. Th,Ys{ discrepa cy ould be clarified prior to final 4 PUD /subdivision submission. 5. The applicants, in their conceptual PUD /subdivision submission, identified a variety of provisions to minimize auto travel and parking demand. It was unclear, however, as to the extent to which the applicants proposed to implement the various provisions, hence a request to clarify the specific measures which they propose to undertake. The applicants' S, are outlined on Pages 75 thru 78 of their preliminary PUD /subdivision. submission. In general, these representations should be made conditions o ,')PUD /sub- division approval. Given the very gen l nature of the representations specific language rr -- 7ayy -to be addressed n in the context of �kfinal PU '? agreement and consideration should be given to the practical aspects of enforcement. I believe, however, that if the language can be further clarified as part of the l PUDY agreement, that the representations of the applicants should contribute to the minimalization of potential impacts of peak occupancy on the adjacent street network. 6. In its conceptual review of the lodge component of the PUD, the P &Z was concerned about whether the various public improvements sed by the applicants offset the requested right -of -way vacations. As condition of their art of the requested vacati¢n� various encroachments, they requested that the applicants ..____ _ -__j idenfity the specific improvements to be undertaken in support of their request. The Council, however, has conceptually agreed to the requested vaccatipns„i hange for the applicants donation of the eae�rr�>JJ�r property. As a result, this condition is for all practical purposes moot. The applicants' clarifications, which are outlined on Pages 79 thru 81 of their preliminary submission, contain specific representations which should be made conditions of �Z-4UD /subdivision approval. In addition, their clarifications should probably be included in the Council ordinance granting the requested vacati 61 n support of Council's action. • • 7. The applicants, in their preliminary PUD /subdivision submission have agreed that the vacation of Dean Street is expressly conditioned upon the realignment of all utility lines at the applicantoexpense, as may be required, and' the retention of public use of the street for circulation purposes. This commitment should be a condition of�C- PUD /subdivision approval and appear i�the final PU agreement w Conditi n 7 also required the applicants to submit mutually acceptable maintenance and use agreement between themselves and the Mountain Chalet for the north half of vacated Dean Street lying immediately adjacent to the Mountain Chalet. The applicants have a cut such an agreement with Ralph Melville and recorde with the Pitkin County Clerk. This agreement, however, should be reviewed by the City Attorney and City Engineer and any changes accomplished prior to final PUD /subdivision approval. 8. All utility companies which currently have lines in any of the proposed street vacations have agreed that the loss of these rights -of -way will not interfer with the utiliti s� current or future needs. The utilities also agree to relocate their current services in the event require provided, however, that the applicants assume all coqf:�) related to such relocations. Individual letters with respect to this issue are provided for each utility and are located on Pages 83 thru 89 of the applicants' preliminary PUD /sub- division submission. We need to discuss with Jay whether or not the City should VE condition its approval upon the applicants' assumption of related relocation co4or whether we should leave this as a matter between utility companies and the applicants. 9. The applicants have submitted a detailed subdivision plat as part of their preliminary PUD /subdivision submission. The Engineering Department has reviewed this submission and has 0 • identified several minor items requiring clari- fication. The clarification of these issues should be made a condition of preliminary PUD /subdivision approval(,, � � jJ 10. My comments with respect to ConditioA0 are the same as }wee Conditio9. 11. Tom Dunlop has indicated that the commitments made by the applicants to comply with the Environmental Health Departme �s review comments, dated October 22, 1983, are sufficient to warran�)no further detailed discussion of environmental issues at this time (,iee Attachment # File # for Tom's conceptual review comments). The specific commitments which the applicants have propose ire ponse to Avironmental /i�eal hs oncernpare found on Pages 90 thru 93 of the applicants/ preliminary PUD /subdivision submission. These commitments should be made a condition of preliminary PUD /subdivision approval. An additional t which Tom requests is that the applicants obtain an air pollution permit prior to beginning demolition. This permit is required pursuant to State ^' air pollution control regulations. Tom will require that a copy of this permit be furnished to his office prior to commencing demolition on the project �2u %i5 12. Councils' conceptual PUD /subdivision approval of the lodge compone o e Aspen Mountain P nd their award to the applic nts 17 lodge units, would eem to indicate that they are prepared to acknowledge and verify the existence of 275 existing lodge units which may be reconstructed pursuant to Section 24 -11.2 (a The ability to reconstruct 42 of these units, however, is tie to the U.S. Backruptcy Cou &approval of the Cantrup 49yevt and the concurrent settlement of outstanding ligitation between the Cantrup estate and the City of Aspen. Obviously, this y � • project is entirely dependent upon the au' sitio &1itigatUn. n of the Cantrup estate and the settlement of {� 1l / Condition412 is essentially a housekeeping condition and should be included as a condition of =ZPUD/subdivision approval. 13. Originally, applq7omof s for the Aspen Mouptain Lodge had anticipated ondo financing �fi ownership for the proposed hotel. Thi approach, however, appears to have been abandoned in f avor� more traditional financing tech- niques. The applicants amcurrently propose to condominiumize the hotel in order to provide maximum flexibility during the financing process. Specific comments with respect to the appli can sI request for condomini umiz ation are contained in /-,—I li?ctio ,of this memorandum. Both P &Z and Council were concerned about the nature of the ownership anjd operation of the proposed hotel. Specific concerns ran � rom the long -term feasibility of the project to the experience and credibility of the hotel operator. i All of these concerns should be addressed by the applican s prior to Councils' final PUD /subdivision consideration. However, I really have no insi hts as o what conditions P &Z might wish to place upon the (mot this time.` 14. P &Z and Council were both concerned about increased pedestrian congestion in the immediate site area. TDA, the applican s /91� traffic consultants, have prepared a14tEt-h study to address these concerns. The results of this study are summarized on Pages 102 thru 107 of the applicants' preliminary PUD /subdivision submission. Essentially, the study outlines specific improvements to be undertaken by the applicants to minimize pedestrian conflicts and concludes that the additional pedestrian trips generated by the hotel will have mini al impa 'n the immediate site area. TDA's analysis is complex and is somewhat , subjective in nature given a variety of assumptions made by the con ultants. Rather than debating the specific findings, I imply summarize the conclusions for P &Z in order to determine whether their concerns have been adequately addressed. The specific pedestrian improvements which the applicants propose to make should be included as a condition ofl:t@ PUD /subdivision approval. 15. The applicants committed, as part of their conceptual PUD /subdivision review, to participate in the proposed C� LC lodge improvement district on whatever basis may be determined by the district to be appropriate. This commitment remains unchanged although no further progress with respect to formation of the district has been made to my knowledge. Condition 15 should obviously also be a condition of pre- liminary PUD /subdivision approval. 16. The applicants have addressed each of the preceeding conditions as part of their preliminary PUD /subdivision submission. The extent to which they have adequately addressed conditi61 thru 15, however, is obviously open to debate as my comments indicate. Sufficient informatics has been submitted, however, to allow proceeding with preliminary PUD /subdivision review. We may want to require additional information prior to formerly granting preliminary PUD /subdivision approval. 17. This is a ^-ff condition which should also be included in the applicants' preliminary PUD /subdivision approval. A partial listing of these representations is provided on Pad5e5 108 thru 111 of the applicnats' preliminary PUD /subdivision submission. I suggest that we compile a complete list starting with the applicants' conceptual submission and continuing through final PUD /subdivision approval so as to 0 0 facilitate preparation and review the applicants' final PUD /subdivision agreement. 18. Council reserved the right to ammend or otherwise modi C49) their conceptual PUD /subdivision approval of the lodge component following review of the remaining compoments of the Aspen Mountain PUD. Council has granted conceptual approval to the PUD's remaining compoments and no f rther changes were requested in the lodge component i. 19. Counci ,�j l, its September 25, 1984 meeting, moved to amend Conditi n`'� to make it effective six months subsequent to the Coun 5 esolution g the applicants' employee housing proposal. In the absence of this amendment, the six month period would have lapsed prior to the submission of the applicants' preliminary PUD/subdivision applica ' on f o lodge r the 1 ge � �� -72, 1�3 AI'�.,.., ►) r ASPEN *PITKIN REGIONAL BUILDIN2 DEPARTMENT MEMORANDUM TO: Alan Richman, Planning Dept. FROM: Jim Wilson, Fire Marshal95-� DATE: November 7, 1984 RE: Aspen Mountain.Lodge Preliminary GMP /Subdivision My comments of a Fire, Life and Safety nature, regarding the Aspen Mountain Lodge Preliminary GMP and PUD /Subdivision submittal are limited to the proposed continued use of the Continental Inn. Inadequate maintenance and repair of this building has effectively ended it's useful life. The typical response to this Department's requests.to upgrade the building has been "economic, hardship ", and the current developers are already singing the same tune in reference to this project. I am requesting the developers to qualify the extent of the "re- furbishing" planned for the Continental Inn. The Inn should be brought into compliance with the Uniform Housing Code as adopted by the City of Aspen, Section 7 -196, Aspen Code, and conditions deeming the building "unsafe" by current codes must be abated prior to the issuance of any building permit for this project. This requirement shall not preclude the issuance of any demolition permits. JW /ar offices: mail address: 110 East Hallam Street 506 East Main Street Aspen, Colorado 81611 303/925 -5973 Aspen, Colorado 81611 0 MEMORANDUM TO: Alan Richman, Planning FROM: Bill Drueding, Zoning Enforcement Officer µ4�2 0 DATE: November 6, 1984 RE: Aspen Mountain Lodge Preliminary GMP /Subdivision I think it would be good for the applicant at this time to address park dedication fees for the free market residential portion of this project. I know there will be some bedroom count credit and I feel this should be agreed on at this time. Granted employee housing that is low to moderate income can be exempt from park dedication fee by Councils approval. Also, if lodge units are condominiumized, do they now fall into the residential category or do they remain commercial. Park dedication fees are collected prior to issuance of a building permit. In the case of Aspen Chance Subdivision, Council agreed to delay park dedication fees until a Certificate of Occupancy was issued for each building. G7hat will Council work out, if anything, on this project. cc: Patsy Newbury, Zoning Official Paul Taddune, City Attorney BD /ar MEMORANDUM TO: Alan Richman, Planning Director FROM: Jay Hammond, City. Engineer DATE: November 6, 1984 RE: Aspen Mountain Lodge Preliminary Subdivision and P.U.D. ------------------------------------------------------------------ Having reviewed the Aspen Mountain Subdivision preliminary submission, the City Engineering Department would offer a number of observations. You may recall my memorandum to Sunny Vann of November 15, 1983, regarding the conceptual application for this project. In it, I spoke, occasionally glowingly, of the opportu- nities presented by this project in terms of platting, circulation, utilities and public amenities. Preliminary - review allows us the opportunity to assess where some of these opportunities have progressed. In order to simplify some comparison between the prior discussion in the November 15 memo, I.will generally follow its format in an analysis 'of the preliminary plan. As I understand, the current submission is intended only to address subdivision and Planned Unit Development (P.U.D.) issues as they relate to the lodge portion of the project. The preliminary submission documents, however, address several items relative to the residential Top of Mill project', particularly in the_ plat language. To the extent that this information raises questions about that portion of the site, I have included comments at-.this time. A. Utilities 1. Water - The preliminary submission continues to propose' improvements to the system including the 12 inch main in Galena. The following items should be noted: a. The 12 inch main in Galena crosses the sewer line at three locations and will have to respect proper separation or the sewer line will have to be encased at the developer's expense. b. The 12" main should have intermittent isolation valving. C. The South Monarch interconnect should be noted on the proposed utilities plan. d. Hydrant locations on the plan do not seem to correlate with the recommendations of the Rolf Jensen and Associates report. , Page Two Aspen Mountain Lodge: Preliminary Subdivision and P.U.D.. November 6,'1984 2. Sewer - The preliminary' plan would appear to be in compliance with the .rep'resentation's at conceptual. The specif,ic.plan is subject to comment by the Sanitation District although we would note the following: Discussion of the proposed vacation of Dean Street would appear to preclude utility usage. Sewer easements must be maintained where needed in Dean. 3. Storm Drainage - The preliminary submission references the conceptual documents regarding storm facilities and speaks of on -site detention of developed flows. It is, somewhat` vague, however, regarding the specific location of 'detention facilities. We would recommend the applicant be required to address'' the following: a. Specific location of detention ponding.. The application mentions investigation of landscape ponds and underground parking structures. The plan, however, �• does not address location and appears to • leave little , room for ponding:' b. Location and extent of co.nnecti.ons to - the` storm sewer as. well as on -site culverting,.french drains, drywells,' etc. 4. 'Electric/Communications - The applicants are proposing -relocation of the various power and communications utilities to underground alignments in the street Rights -of -Way paralleling sewer and - water lines. In most cases, this should not be; a. problem but we would note.the following: a. In Durant the plan would propose power, phone, and cable TV lines in close proximity and - parallel to an existing large diameter water transmission'. main. A detailed design solution must address how this will be accomplished. so as not to interfere with access for maintenance of the waterline. b. Power or communication utilities under sidewalks or curb and gutter must be placed in conduit. c. Routing of utilities in Durant could effectively isolate the Mountain. Chalet and the construction phasing plan,should address this aspect: The applicants should be required to address all:such details in the form of detail design and scheduling at final plat. qr , Page 3 Aspen Mountain Lodge Preliminary Subdivision and P.U.D.. November 6, 1984 B. Fire Protection° This ,matter is, of course, subject to comment by the Fire Department and Fire Marshal as to the appropriateness and location of the various equipment proposed as well as whether it adequately - replaces vehicular access to the interior courtyards. we have noted the apparent discrepancies in the recommended hydrant locations.. C. Roads /Circulation /Parkins The preliminary plan remains true to the conceptual submission proposing reconstruction of most streets within the project as well as new sidewalks, curb and gutter, and.crosswalks. 1.- Circulation remains. improved by a minimization of driveway entrance. conflicts and a good internal route. The f ollowing, concerns should be noted, however: a. The easement proposed for Summit ,Street is minimal at 25 feet leaving -a narrow street for two -way circulation and virtually no setbacks to accommodate snow removal or trash facilities. Engineering would continue to maintain the potential need for Summit Street as a full fledged circulation route and , would suggest at a,. minimum-further physical , setback of structures from. the proposed easement. b. Platting should indicate proposed temporary public- roadways during construction. C. Wording of the proposed vacation ordinance in Appendix E should be amended to reflect the reservation of surface and circulation uses by the public. 2. Parking remains in compliance with conceptual represent - ations.although it has been reduced somewhat in proportion to reductions in the lodge size. We would :continue to support requirement of the various measures proposed by .the applicant including: a. Courtesy Vans b, Valet Parking c. 'Employee shuttles and transit passes. 0 • Page 4 Aspen Mountain Lodge Preliminary Subdivision and P.U.D.' November 6, 1984 D. Condominiumization Condominiumiza,tion approval should be contingent on submission of adequate condominium mapping following substantial completion of the structures. E. Street Vacations 1. Dean Street - Vacation of the two blocks of Dean from Galena to'Monarch should be contingent on the following: a. Reservation of surface and circulation use by the public. (The current proposed ordinance would not appear to-do so.) b. Rerouting of the various utilities -to the satisfaction of the City Departments and various franchises. Possible conflicts in Durant, for instance, if not addressed'in detail to the satisfaction of the entities involved, may suggest permanent relocation of power /co- mmunication lines in conduit through the subgrade structure in Dean Street. F. Encroachments The language in the City dedication on page two of the preliminary plat regarding the encroachments into South Mill is entirely vague. Nowhere does the submission define in specific terms the extent of the encroachments that will be needed. :It would seem appropriate to define these areas dimensionally on the plat documents. G. Construction Schedule and Phasing The preliminary submission examines in.some further detail a phased approach to the lodge construction. The applicants now propose construction of the west wing in the first phase with demolition of other structures excluding the Continental Inn. Considerable detail in this area remains-to be worked out and we would suggest the following requirements at Final Plat., 1. Specific design and location of pedestrian, barricades and walkway structures. 2. Traffic and pedestrian circulation routes during constr- uction. 3. An agreement. on the part of the applicants to properly Page 5 Aspen Mountain Lodge Preliminary Subdivision and'P.U.D. November 6, 1984 maintain the barricade and walkway system throughout the `course,>of_-construction including repairs and snow removal. 4. Provision of a plan addressing site access and material and.equipment storage areas during.construction. 5. Further scheduling and design detail involving the various utilities. In the event alignment problems remain, we may yet need to maintain permanent utility locations within Dean Street. 6. Further detail regarding the limits of excavation, construction easements, and shoring needs. 7. Proposed landscaping of areas where demolition is contemplated without immediate reconstruction. H. View Plane The preliminary documents do not address the view plane issue any further. It is apparently the applicant's assertion, and we are inclined to agree as detailed in the November 15 memorandum, that view plane consideration is not appropriate . at this site. I. Platting Platting of the Aspen Mountain Lodge does much to "clean up survey and rights -of -way in the area. Several wedges of land being dedicated by ' the applicants will help us in straightening 'existing streets and a land trade on South Galena serves to improve that right -of -way significantly. Several minor items require clarification: 1. 'Open Space - The plat and dedication language refers to public open space easements on Lot ,l that are not apparent on the plat drawings. The applicants should indicate at least the.approximate locations and square footages of these areas... 2. The documents also refer to Ski Company easements and the'Top of Mill trail which are not shown on this plat. ` These items should be clearly delineated on. the .residential application. 3. Description language. on the City Dedication certificate regarding proposed encroachments is excessively vague. S r Page 6 Aspen Mountain Lodge Preliminary Subdivision and P.U.D. November-6, 1984 Conclusion The preliminary submission for the Aspen Mountain Lodge Subdivision and P.U.:D. is generally responsive to-concerns raised subsequent to conceptual review. Key items of concern to this office include: - Continued reservation of utility rights in - the various vacated areas .pending final approval and acceptance of detail design solutions by the various utilities. - Exploration of .,.providing a wider road easement at the Summit Street extension. Further detail regarding construction scheduling and provision of temporary circulation and pedestrain facilities. Indication of specific location of storm detention and control structures. JH /co /AspenMtLodge • SPEN *PITKIN 0 ENVIRONMENTAL HEALTH DEPARTMENT TO: FROM: MEMORANDUM Sunny Vann, Director Planning Office LNOW -7t ti Thomas S. Dunlop, Director Environmental Health Department DATE: November 6, 1954 RE: Aspen Mountain Lodge Preliminary GiIP /Subdivision The above- referenced submittal has been reviewed for the concerns listed in Condition #11 of the conceptual approval, Resolution Number 84 -11. The commitments made by the applicant to comply with review comments of this office, dated October 22. 1983, are sufficient to warrant no further detailed discussion of environmental issues by this department. That is, with one exception. It will be a further requirement that, due to the magnitude of the demolition proposed, the applicant obtain an Air Pollution Permit prior to beginning demolition. The permit is required under State of Colorado Air Pollution Control Regulation Three. Further, the applicant shall document, through analytical analysis of the structures to be razed, that asbestos does or does riot exist within the buildings. This shall be completed prior to initiation of the demolition. The demolition permit can be obtained from the Colorado Health Department, Air Pollution Control Division, 4210 E. 11th Avenue, Denver, Colorado 80220. Contact person is Dick Fox who can also be reached at 320 -4100. The asbestos testing shall be performed by a private consulting firm who specializes in collection and analysis of such fibers. A copy of the permit and asbestos test results shall be furnished to this office prior to commencing work on the project. TSD /co /AspenLodge 130 South Galena Street Aspen, Colorado 81611 303/925-2020 av CITY OF"ASPEN 130 W -outh galena. sltreet x aspen, colorado 81611 3:03- 925 - 20.2; 4 MEMORANDUM DATE: November 5, 1984 TO: City Council City_ Manager V Planning Director" FROM: City Attorney RE: Cantrup Bankruptcy p 6 od NOV - 61984 Forwarded herewith in connection with the Cantrup bankruptcy, is a copy of the disclosure statement filed with the bankruptcy court on October 15, 1984. A hearing on the adequacy of the disclosure statement is scheduled for Thursday, December 21, 1984, at 1:30 p.m., in the Eankruptcy Courtroom, Denver. This most recent version is more lengthy and complicated than pre- vious versions which have already been distributed, and provides the best explanation of the status of the bankruptcy, including a discussion of efforts following Judge Matsch's July 3, 1984, deci- sion reversing the confirmation order. Although voluminous, I have decided to once again distribute complete copies to each of you since it contains so much valuable information concerning the Cantrup Estate properties at the base of the mountain and at the Meadows. You might also note on page 35 that the Estate and Commerce have agreed to share the City of Aspen real.estate transfer tax "if applicable ". I should remind you that we are anticipating a court battle with regard to the applicability of the RETT. Please do not hesitate to call or stop by my office if you have any questions.in this matter. PJT /mc Attachments • 9 UNITED STATES BANKRUPTCY COU FOR THE DISTRICT OF COLORA UNIM STATES BANKRUPXY COURT DISTMCT CF COLOP.A00 Off 1 5198A IN RE: ) BRADrORO L. BOLTON, HANS. B. CANTRUP Clerk S. S. IT 074 -26 -5744, and ) JUNE -ALLEr. L'4CSS CANTRUP, ) a /k /a JUI'IE MOSS, ) a /k /a JUNE CANTRUP, ) a/k /a JULIE I -I. ' CANTRUP ) S. S. v 375-20-1891, ) d /b /a CANTRUP INVESTI•IENTS, d /b /a CANTRUP ) DEVELOPI•IENT, d /b /a HBC INVESTMENTS, individually and as shareholders, ) Officers and directors of ASPEN HOTEL ) MANAGEMENT, INC., a Colorado corporation ) CASE NO. d /b /a CONTINENTAL INN, d /b /a ASPEN INN, ) d /b /a ASPEN MEADOWS, d /b /a BLUE SPRUCE, ) .d /b /a CORTINA LODGE, d /b /a NUGGET LODGE, ) d /b /a SWISS CHALET, d /b /a HOLIDAY HOUSE ) f/d/b/a WILDWOOD INN, f /d /b /a WOODSTONE ) INN, d /b /a ALPINA HAUS, d /b /a ASPEN ) CONFERENCE CENTER, and as former share - ) holders, officers, and directors of ` ) ASPEN RESERVATIONS, INC., a Colorado Corporation, and ROCKY MOUNTAIN TRAVEL, ) INC., and as a former joint venturer in MOSS ASSOCIATES, ) Debtors. j. DISCLOSURE STATEMENT 83-B 01161'G Spencer F. Schiffer, Chief Executive Officer for the Estate of Hans B. Cantrup and June M. Cantrup ("Schiffer"), Hans B. Cantru _ and June Allen I,Ioss Cantrup ( "the Debtors ") , Commerce Savings Association of Angleton, Texas .("Commerce"), and the Unsecured Creditors' Committee ( "the Committee "), pursuant to 11 U.S.C. § 1125, submit the following Disclosure Statement to all of the Debtors' known claim and interest holders. This statement is provided to dis- close such information as is necessary to enable holders of claims or interests to make an informed decision in exercising their right to vote for acceptance or rejection of the Plan of Reorganization ( "the Plan ") filed by the Debtors, Commerce, and the Unsecured Creditors' Committee (collectively "the Proponents ") with the Bankruptcy Court. A copy of the Plan accompanies this. statement, and is attached hereto as Exhibit W'. x� The Court will set a date for a hearing on the confirmation of the Plan. In order to obtain confirmation of the Plan by t1he Bankruptcy Court, the Plan must be accepted by a requisite number of creditors based upon the amounts of their claims as well as the number of such .claims. These requirements are enumerated under a section of this Disclosure Statement entitled "Approval of the Plan." The Proponents recommend that you vote on the Plan. No representations. concerning the Plan are authorized by the Proponents other than as is set forth in this Statement. Due to the complexityi of the Debtors' financial affairs, the Proponents are unable to war- rant or represent that the information contained herein is without error, although all reasonable efforts under the . circumstances have been made to be accurate.. While all of the Proponents believe that the valuations and. other facts set forth in this Disclosure Statement represent a fair disclosure of all pertinent matters, it is the mutual understanding and agreement of all parties hereto that in the event the Plan cannot be confirmed, nothing contained herein shall constitute an admission by any signatory. -2- III. ANALYSIS OF DEBTORS' PROPERTIES. . . . . . . . . . 13 A. Description of Properties to be Sold I. BACKGROUND INFORMATION REGARDING THE DEBTORS' BUSINESS; Plan EVENTS LEADING TO CHAPTER 11 PROCEEDINGS . . . . . . . . .1 II. SUMMARY OF DEVELOPMENTS DURING CHAPTER 11 PROCEEDINGS. .4 A. Appointment of Chief Executive Officer . . . . . . . .4.. B. Loan. t,o Redeem Properties From Foreclosure Sale. . . .4 C. Sale of Debtors' Properties. . . . . . . . . . . .. . .5 D. Confirmation of Schiffer's Plan. . . . . . . . . . . .7 E. Negotiation and Submission of New Plan . . . . . . . .. 7 F. Summary of Business Operations . . . . . . . . . . . :8 G. Principal Litigation During.Chapter 11 Proceedings. .8. . 1. Requests for Relief From Stay. . . . . . . . . . .3 . 14 2. EquiNational Aspen Associates. . . . . . . . . . .9 . 3. James R. McDade Contract Rejection . . . . . . . .9 H. Secured Claims Acquired by Commerce. . . . . . . . . 10 III. ANALYSIS OF DEBTORS' PROPERTIES. . . . . . . . . . 13 A. Description of Properties to be Sold Under Plan and Opinion of Their Value, by Parcel. . .. . . . . . . . 13' 1. Continental Inn . . . . . . . . . . . . . . . . . 14 2. Paas House . . . . . . . . . . . . . . . . . . 14 3. Chase Duplex . . . . . . . . . . . . . . . . . . 14 4. Chase Lots . . . . . . . . . . . . . . . . . . 14 5. Robinson Parcel . . . . . . . . . . . . . . . . . 15 6. Towneplace . . . . . . . . . . . . . . . . . . . . 15 7. Aspen Inn . . . . . . . . . . . . . . . . . . . . 15 8. Aspen Inn Apartments, Units 21, 22, 23, 31, 32 and 33 . . . . . . . . . . . 15 - 9. Aspen Inn Apartments, Unit 1 -C . . . . . . . . . 15 10. Blue Spruce . . . . . . . . . . . . . . 16 11. Aspen Inn parking lot. . . . . . . . . 16 • 12. Chalets East and West . . . . . . . . . . . . . . 16 13. 700 South Galena . . . . . . . . . . . . . . . . 16 14. Summit Place . . . . . . . . . . . . . . . . . . 16. 15. Holiday House. . . . . . . . . . . . . . . . 16 16. Minedumps . . . . . . . . . . . . . . . . 16 17. Snowchase A. . . . . . . 16 18. Snowchase B. . 17 19. Koch Lumber Parcel 17 20. Barbee A . . . . . . . . . . . . 17 21. Barbee B . . . . . . . . . . . . 17' (i) IV. A. B. C. D. E. F. The S,7-le Agreement . . . . . . . . . . . . . . . . ..29 1. Estimated value of claim release 30 2. Other consideration to be given by Commerce to the Estate . . . . . . 32 3. Estimate of the effective sales price under the Plan . . . . . . . . 33 Conditions Precedent to Closing. 33 Other Funds Available for Distribution . . . . . . 34 Distribution to Creditors Under the Plan . . . 35, 1. Secured cl aims . 3'5' 2. Administrative Priority Claims 39 a. Attorneys' fees . . . . . . . . . . . . . 39 b. Accountants' fees . . . .. . . . . . . . . . 40 c. Other professional persons. . . 40 d. Other administrative claims 40 3. Other Priority Claims. . . 40 a. Wages . . . . . . . . 41. b.-Deposits . . . . . . . . . . . . 41 c. Taxes . . . . . . . . . . . . . 41 4. General Unsecured Claims . . . . . . . . . 41 a. Aspen Hotel Management, Inc.. ... . . . . . . 41 b. Estimate of unsecured claims; treatment of disputed, contingent, unliquidated, and unscheduled claims. . . . . . . . . . .. . . 42 5. Summary of Distribution to Creditors . . . . . . 44 Distribution to the Debtors Under the Plan . . . . . 45 Consolidation of the Debtors' Estates. . . . . . 45 V. APPROVAL OF THE PLAN . . . . . . . . . . . . . . . . . . 46 A. Effect of the Absolute Priority Rule on Confirmation. 46 B. Voting By Claim Holders. . . . . . . . 47 (ii) 22. Top of Mill. . . . . . . . . . . . . 17 23. Aspen Mountain Mining Claims . . . . . 17 24. Aspen. Meadows. . . . . . . . . . . . . . . 17 25. Summary of Mollica Valuations. . . . . . . 1� B. Alternative Analysis of Value of Hotel Site as an Assemblage . . . . . . . . . . . . . . . . . . . . . 1.9 C. Limitations on Opinions of Value as Accurate Representations of Fair Market Value . . . . . . . . 21 D. Summary of Liens Against Properties. . . . . . . . . 23- THE PLAN OF REORGANIZATION 2.9 A. B. C. D. E. F. The S,7-le Agreement . . . . . . . . . . . . . . . . ..29 1. Estimated value of claim release 30 2. Other consideration to be given by Commerce to the Estate . . . . . . 32 3. Estimate of the effective sales price under the Plan . . . . . . . . 33 Conditions Precedent to Closing. 33 Other Funds Available for Distribution . . . . . . 34 Distribution to Creditors Under the Plan . . . 35, 1. Secured cl aims . 3'5' 2. Administrative Priority Claims 39 a. Attorneys' fees . . . . . . . . . . . . . 39 b. Accountants' fees . . . .. . . . . . . . . . 40 c. Other professional persons. . . 40 d. Other administrative claims 40 3. Other Priority Claims. . . 40 a. Wages . . . . . . . . 41. b.-Deposits . . . . . . . . . . . . 41 c. Taxes . . . . . . . . . . . . . 41 4. General Unsecured Claims . . . . . . . . . 41 a. Aspen Hotel Management, Inc.. ... . . . . . . 41 b. Estimate of unsecured claims; treatment of disputed, contingent, unliquidated, and unscheduled claims. . . . . . . . . . .. . . 42 5. Summary of Distribution to Creditors . . . . . . 44 Distribution to the Debtors Under the Plan . . . . . 45 Consolidation of the Debtors' Estates. . . . . . 45 V. APPROVAL OF THE PLAN . . . . . . . . . . . . . . . . . . 46 A. Effect of the Absolute Priority Rule on Confirmation. 46 B. Voting By Claim Holders. . . . . . . . 47 (ii) 4 In the early 1970's the City of Aspen and Pitkin County underwent a significant revision in the approach to the regulations of land use and development. Both the City and the County revised their respective zoning codes and maps, adop e very rigoro bdi vision regulations, and sought t --control growth by the implemen tion of Growth Management Plans. ; In 1975 the City of Aspen adopted a evised zoning map wcfi; wfien taken together with the revised zoning, code, Baas inte�,ided to facilitate the upgrading of existing touri :sty accommodations, and the development of new first class accommoda tions, in the vicinity of the base of Aspen Mountain. /The new zoning co a an map m. e -most zf the l oslges_a -n a ommodations out- side of that general area nonconforming and, when examined carefully, it is clear that the intention was to abate those non - conforming uses and replace them with new facilities in the redefined tourist zone. At that time Hans and June Cantrup owned the Continental Inn and Aspen Inn, both of- which -zer located in that tourist zones he base of_As*_ Mo -aJn. 'Having followed the .acts the City and County and having studied the intricacies and complexities of the new land use regulations, Mr. Cantrup perceived an opportunity to create an assembly for the development of a major world class hotel which would involve the demolition and reconstruction of most of his exist= iufacilities as well_ a-s_th.e__.acquis.ition _ of additional properties " aeent thereto. Mr. Cantrup believed that if he could acquire non- conforming properties, remove the nonconforming use and transfer it to the conforming (tourist) zone, while at the same time creating necessary employee housing, -he could accomplish his goal while satis- fying the needs and desires of the City with respect to new and upgraded tourist accommodations as well as employee housing:. Believing that he was acting in conformity with the expressed goals of the City, Mr. Cantrup also believed that his objectives would be embraced and indeed facilitated by the City. Thus, he undertook an aggressive campaign to acquire all of the properties necessary to support his plan. During this period of time real estate prices in Aspen were rapidly increasing. Lenders were eager to make loans to qualified borrowers. The Debtors took advantage of the opportunities presented and through highly leveraged moves were able to .aggregate sufficient property to become the largest landowners in Aspen. In 1978 Mr. Cantrup obtained approval to expand the exist- ing Aspen Inn as the first phase in his Master Plan and obtained a construction loan from IntraWest Bank of Denver in the amount of $4,000,000. Initially, construction proceeded in accordance with plans which had-b rove u.ni.t additi.an_j However, after acquiring the adjacent Blue Spruce Lode Mr. Cantrup decided to change the configuration so as to accommodate an additional 35 units for a total of 71. J His int the was to demo -fish Ifi—e-15 units aE-E ie-Mue Sprun -lo3ge hat the additional 35: units would come within the purview of the reconstruction exemption to the Growth Management Plan. However, the City took the position that the change in configuration constituted a substantial deviation from the original Growth Management Plan application for the initial 36 units, as a consequence of whicb_be 1978 Growth Management Plan Application woul��iav_e -t.o Vie- amended so a os as additional Although the application was processed in accordance with the requirements of the City, when presented in final form the amendment was denie 1--a -ad a Stop �p�k Order issued in January_ of 1981.x- At --thaa i�me although the full $4,000,000 con is ruction loan had been funded, the structure -was only between 50 and 70% complete. During that same time frame the Debtors had also obtained a construction loan from IntraWest Bank of Denver to build the Prospector Lodge. That development consisted of the demolition and reconstruction of 20 lodge units in downtown Aspen. For various rea- sons there were numerous construction delays and other problems which finally resulted in Mr. Cantrup's surrendering the project to IntraWest, which retained an outside contractor to complete it. That project also involved the funding of a $4,000,000 construction loan for a facility which could not be completed while under Cantr up' s control. A third project under construction during the same period was a fourplex known as the Summit Place or 750 South Mill Project. The project involved a $1,000,000 construction loan originated by E.V. Chilson and Company and subsequently held by Heritage Savings & Loan. For various reasons, that project was less than fifty percent completed although over $800,000 was funded on the loan. During the same time frame interest rates were steadily rising and real estate prices in Aspen were steadily declining. In an effort to find a short term solution to their problems, the Debtors borrowed heavily to meet debt service. Many of those interim loans were of very short duration with very high interest rates,. and many of the lenders' rates were tied to prime. As the prime rate increased, Mr. Cantrup became increasingly unable to meet his current obligations and continued to pledge available equity in his existing_ .pr.- o.p.er_ties for_additional borrowing to meet debt-.s.Qrvice. 1 Those acute financial problems were exacerbated by the above- desscri-5ed cor..:- struction problems and delays and most acutely by the stopping of construction by the City of Aspen on the _A_ spen Inn expansion /---I-n- addttiori o the ongoing problems relative to rising interest -rates -2- and decreasing property values, the construction leans increased nis debt by $9,000 ",000 without generating any additional income to ser- eice that debt. Recognizing the severity of the problem, IntraWest Bank of Denver agreed in November 1981 to increase the Debtors' credit line from 55400,000 to $8,000,000 in order�to consolidate debt, provided that the Debtors would agree to a plan for the liquidation of their assets to reduce debt. Accordingly, the Debtors agreed on a plan for disposal of certain of their properties, and shortly thereafter sold both the Woodsi:one Inn and Wildwood Inn. . However, the forced sales did not produce sufficient revenue to make a serious difference. As the market conditions deteriorated, so did the Debtors' chances for solution of their problems. In a final effort to stabilize their finances, the Debtors undertook an intensive effort to sell their major holding, the asseze- bly which had been created for thp_purpos ilding a major hotel at the base of ,;,Aspen Mountain. In October 1982., "y entered into an agreement to convey all of thei'�'-pzDpe_r_ti_es t.o -d point venture for the purpose of . refinance and development. That transaction was never consummated. During October 1982, Mr. Cantrup also began discussions with other groups regarding, proposals to sell either the entire hotel site or just the Continental Inn, as well as the Aspen Meadows, which had been the subject of sale discussions since 1981. As these dis- cussions proceeded, during the period of December 1982 to March 1983 twenty -seven foreclosure sales of the Debtors' real property were held. The Debtors' rights to redeem those properties began to expire in March 1983, and redemption rights as to a key property, the Continental Inn, were set to expire on March 23, 1983. On March 18, 1983, negotiations for the sale of the Debtors' properties broke down. On that date, IntraWest Bank. of Denver notified the Debtors that it would file an involuntary bankruptcy petition against the Debtors if they did not file a voluntary petition on or before March 22, 1983. On March 22, an involuntary petition under • Chapter 11 was filed. Approximately one hour later, the Debtors filed a voluntary Chapter 11 petition initiating the present bank- ruptcy proceedings, and the involuntary petition subsequently was withdrawn. -3- q • MlINIZial uu : - ; • whis Itely v -► ; ► .: : ';• ►. On March 29, 1983, IntraWest Bank of Denver moved the Bankruptcy Court to appoint a trustee to operate the Debtors' business and manage their property. Numerous creditors joined in the motion. The Debtors offered to give complete control over the man- agement of their estate to Spencer F. Schiffer, an attorney who pre- viously had represented the Debtors. I.-, ,view of the complexity of the Debtors' financial affairs and Schiffer's familiarity with those affairs, a consensus of creditors supported the. turnover of control to Schiffer. An;Operating Order appointing Schiffer Chief Executive Officer for the: ! Debtors' estate was entered on May 4, 1983, and, by the "terms of tire„ Order, Schiffer was vested with the rights, powers, and duties of a debtor in- possession. Following his appointment as ; Chief Executive Officer, Schiffer immediately sought a post- petition loan to be used to redeem the properties of the Debtors which had been sold at foreclosure sale prior to the filing of the Debtors' Chapter 11 petition. Upon reach- ing agreement regarding such a loan with Commerce, Schiffer sought court approval two enter into the loan. The Court authorized the Estate to enter into the loan, by Order dated May 18, 1983, and on May 21, 1983, the Estate closed the loan and redeemed various proper- ties by paying $7,451,000 in pre - petition secured claims. Pursuant to the Court's Order, the post- petition loan with Commerce was secured by the lien positions of the creditors whose claims were satisfied with the loan proceeds. Commerce also was secured by a junior lien covering all properties in the Estate, and was granted an administrative priority claim under 11 U.S.C. S 364(c) (1) . In addition to the redemption loan, Commerce also agreed to give the Estate a line of credit up to $200,000, to be used for oper- ational and administrative expenses of the Estate. The line of credit was also secured with a junior lien and given an administra- tive priority. The Estate has drawn against the line of credit to the $200,000 ceiling. Both the redemption loan and the line of credit became due in full on May 21, 1984. These obligations have not been satisfied, and are now in default. -4- a . i \ \0 9_.1 For several weeks prior to the filing of the .Chapter 11 petition, the bebtors had been negotiating with Delphinance Development Company, a multi - national company with a U.S. base in Dallas, Texas, for the sale of the hotel site assemblage, Spar and Top of Mill, a,portion of the Barbee property, and the Koch property for a purchase price of $26,000,000 plus certain carried interests based upon profits from development. The proposal had several con- tingencies among: which were receipt of zoning approvals for a certain number of units. in the Spar /Top of Mill parcel and a hotel convention center with a minimum of 4U0 condominium hotel rooms and 160 condo- minium suites; the acquisition of.the Mountain Chalet, a parcel com- plementary to the assemblage which is owned by d third party, within the proposed purchase price; and a loan commitment to finance the purchase. On.:or about March 23, 1983, a group represented by Alan R. Novak and Associates indicated that it was interested in purchasing the properties being discussed with Delphinance, on terms more favor- able to the Estate. Active negotiations with both Delphinance and Novak continued until April 7, 1983, on which date the Debtors signed a Memorandum of Intent to sell the above-mentioned properties to Alan R. Novak and Associates and American Century Corporation for the sum of $31,000,000 and other consideration in the form of carried interests. The, bebtors then notified creditors pursuant to 11 U.S.C. § 363(b) of their intent to sell the properties in accordance with the Memorandum of Intent. Numerous creditors requested a hearing on the notice. Following his appointment 'as Chief Executive Officer, Schiffer withdrew the notice, preferring to submit any proposed sale to creditors only after all material terms of such sale had been negotiated. Upon hi.:s appointment as Chief Executive Officer, Schiffer began approaching potential lenders in regard to the refinancing of properties sold at foreclosure sale. It was the legal opinion.of Schiffer's counsel that redemption of properties from foreclosure sale should occur on or before May 21, 1983. Commerce Savings and Loan Association of Angleton, Texas ( "Commerce "), which is owned by American Century Corporation, a party to the Memorandum of Intent, expressed a willingness to loan funds to redeem the properties. The only parties other than Commerce which would even contemplate a loan to the Estate at the time were Delphinance and Interfirst Bank of Dallas. Af ter reviewing the situation Delphinance indicated an unwillingness either to make a loan or to further consider the possi- bility of acquiring any or all of the properties of the Estate. Interfirst at first indicated a total unwillingness to loan any funds to the Estate, ,but after careful reconsideration tentatively committed to make a loan sufficient to redeem the Continental Inn. -5- On May 20, 1981, _ Interfirst determined not to make such a loan and -the loan with Commerce was closed on May 21, 1983. Despite the acquisition of key'lien positions by a lender associated with American, Century Corpora ion, Schiffer informed that prospective purchaser that he would continue to solicit offers for the purchase of any or all of the Estate's properties unless and until an agreement satisfactory to the Estate was executed. Schiffer remained in communication with Delphinance until August 9, 1983, on which date the Estate received a letter stating that the Board'of Directors of the. ' parent company, Archirodon Group, decided to termi- nate further interest in acquiring the Aspen property based upon its caref ul consideration of the ". magnitude of the investment versus the question of zoning approvals. ." In addition to the continuing discus' sions with Delphinance, Schiffer solicited offers from individuals or entities which had previously expressed interest .in the properties such as the Aspen Skiing Company, Donald Trump, 7heBodini (American erties, Inc.) #, and Bruce Ledbetter and -Eric Geis ere presenting P keys (Hatt Hotel Chain) . He also mgt- w�th�r�s unicated with numerous - other p sro pe�t�:v urchasers of the hotel site or Meadows properties. In mid -May, 1983, the group associated with Novak offered to purchase the,.Aspen Meadows as well a= the hotel site assemblage.. In mid -June, 1983, an outline for the sale of the assemblage, the Aspen Meadows, and most of the other properties of the Estate, was presented by Schiffer to the Court and creditors at a status conference. However, certain unresolved contingencies resulted in an apparent stalemate in early July. The need for a reasonably prompt sale was dictated by the interest accrual: on secured claims, the inability of the Estate to service secured debt from current income, and the pressure from secured creditors, attempting- to- res-ume- -for-aclo -s-u- -e -sales of th-e how _"L =-proper- -t- i-es_-J The greatest barrier to a sale was the insistence, both by the Novak group and other potential purchasers, that any sale be made contingent on development approvals from the City of Aspen. hose evelopment approval s-aY� omplex and - obtaining the app oroVals could require a period of time which would be unacceptable in the context of the Chapter 11 proceedings. Moreover, the lack of cer- tainty that approvals could be obtained as required by a prospective purchaser would create a high degree of risk that a proposed sale could not be consummated. The problem involving development approv- als finally was : esolved after Commerce acquired the claims of the two major pre- peL -ition creditors, IntraWest Bank of Denver/ Interf irst Bank of Dallas, and Empire Savings and Loan Association. - The Novak group subsequently agreed to remove development approvals as a =71: contingency to the proposed sale without discounting the proposed sale price. This apparently resulted from the acquisition of the Intrawest and Empire loans at some disccunt, permitting the Novak group to absorb the risk of development approvals without reducing the proceeds of sale to be distributed to other creditors. Negotiations with the Novak group were concluded by Schiffer on September 30, 1983, on which date the Estate, acting through Schiffer, and Commerce entered into a Definitive Agreement for the Purchase and Sale of Real Property ( "the Sale Agreement "). The Debtors opposed the sale negotiated by Schiffer on behalf of the Estate. The Sale Agreement, as subsequently amended, formed the basis for a Plan of Reorganization filed iby Schiffer. Schiffer's Plan was transmitted to creditors- orr -44ar_ch 16, 1984, t9s3ethe.r with -a disc osure ststem -ent and __ballot; Objections to Schiffer's Plan were filed by the Debtors, the _ Pitkin County Treasurer, Thomas J. Kerwin, and K.C.B. Restaurants, Ltd. At the confirmation hearing held on April 12 and 13,-1984, the objections filed by the Pitkin County Treasurer and K.C.B. Restaurants, Ltd. were withdrawn. On April 16, 1984, the Bankruptcy Court confirmed Schiffer's Plan. The Debtors and Mr. Kerwin appealed the order of confirma- tion to the United States District Court. On July 3, 1984, the District Court reversed the confirmation order, holding that the Operating Order appointing Schiffer as Chief Executive Officer could not conf er on Schiff er the power to f ile a plan. The case was remanded to the Bankruptcy Court for further proceedings. Both Schiffer and Mr. Kerwin have appealed the ,District Court's order to the United States Court of Appeals for the Tenth Circuit. The appeals currently are pending in that court. Following reversal of the order confirming Schiffer's Plan, negotiations were held involving the Debtors, Schiffer, Commerce, and the Unsecured Creditors' Committee. On July 9, 1984, an agreement was negotiated which received tentative approval by the .Debtors, Commerce, and counsel for the. Committee. The agreement provided for additional cash to be paid by Commerce for the Estate's properties, and retention of certain properties by the Estate which formerly were to have been conveyed to Commerce. In a&lition, the agreement pro- vided for the Debtors to receive. cash and certain property options. A detailed summary of the consideration to be received and distributed under the Plan is set forth in Section IV, infra. -7- i Draft. copies of an amended Sale Agreement and a new plan were circulated among the Debtors, Coi nerce, and members of the. Committee. On F,ugust 8, 1984, the Committee formally met to discuss the revised sale'proposal,'and voted to endorse the new plan incorpo- rating the proposal, by a vote of six to three, with one abstention. On August 29, 1.984, the Plan, signed by the Debtors, Commerce, and the Chairman of 'the Committee, was f iled with the Bankruptcy Court. The Estate currently operates twelve properties with a total of 398 rental units; of this number, 345 are short term rental units and 53 are' long term rental units. The Estate also operates one restaurant: and maintains several banquet and conference facilities. Since the filing of the bankruptcy, the Estate has sur- rendered an additional 66 rental units co secured creditors. Total expenses from March 23, 1983 through July 31, 1984 were $4,228,351. This figure includes all direct operating costs as well as administrative expenses of the Estate (lawyers, accountants, etc.) paid or accrued during that period. -However, the figure excludes interest accrual on secured debt and depreciation. Total income during that same period was $4,844,637. Accrued but unpaid interest is estimated to be approximately $10,200,168 for that period. Accrued. depreciation is estimated to be $1,136,167 for that period. 1. ReQuests for Relief From stay. Since the commencement of bankruptcy pr6ceedings approximately twenty requests for relief from the automatic stay have been filed by secured creditors seeking the right to initiate or resume foreclosure proceedings against prop- erty securing those creditors' claims. Schiffer has resisted any such requests involving properties within the hotel.site assemblage or involving Aspen Meadows. With respect to other properties, which appeared to have-little or no value in excess of secured claims, Schiffer consented to relief from stay. These properties include the Alpina Haus, the Cortina Lodge, the Prospector Lodge, the Sabbatini parcel, the Hensley House, the Swiss Chalet, the Paradise Theater, the Highlands House, and the Nugget Lodge. The passage of these properties from the Estate to creditors has resulted in a decrease of secured claims in the approximate amount of $7,960,000. and an equiva- lent decrease in the value of the Estate's real property. As of the present date, the Estate has retained title to all properties ci?vered by the Sale Agreement. However, an order has been entered mod fying the stay t0 permit Burr arid--Marjorie Randles to :les ommence foreclosure proceedings against the Continental Inn on or afr November 1., 1984, if a plan has not been confirmed or if the C have not otherwise been adequatel protected by that date.. Requests for re ief rom sway involving the Blue , n Inn parking lot, the Chalet East and the Chalet West currently are pending in the Bankruptcy Court. 2. Ez;INational Aspen Associates. In October, 1982, the Debtors purportedly entered into a partnership with EquiNational Aspen Associates. (EAA) whereby the Debtors would have transferred their properties. to the partnership, the properties would have been developed by the. partnership, and the Debtors would have retained a carried interest in the developed properties. The Debtors purported to secure their:, obligation to convey their properties with a Deed of Trust to EAA. The Debtors did not convey their properties to the partnership, and EAA claimed $5,000,000 damages under a liquidated damages provision, purportedly secured-by the Deed of Trust. In the bankruptcy proceedings, EAA filed a complaint for a declaratory judg- ment declaring it to be the holder of a $5,000,000 secured claim, and for relief from stay. On September 27- 1983, the Bankruptcy Court ruled that the liquidated damages provision and the Deed of Trust had lapsed by their own terms and dismissed EAA's complaint. EAA appealed to the U. S. District Court, which reversed the Bankruptcy Court on February 8, 1984 and remanded the case for further proceedings. On; June 1, 1984, EquiNational assigned its claim to Commerce for the sum of. $1,250,000. The claim has been added to a waiver of claims, discussed in Section IV. A. infra,, and currently is not the subject of litigation due to the pending claim waiver. 3. Jam,-es R. McDade Contract Rejection. In 1973, Hans Cantrup leased nightclub and restaurant space located at the Aspen Inn to James R. McDade, for a period running to October 31, 1987, with an option to renew for an additional fifteen years. McDade sublet the restaurant space to H & C Corporation. In 1979, McDade sold the nightclub leasehold to Cantrup, who then demolished the ,space in connection with a construction project at the Aspen Inn. In 1980, Cantrup purported to convey ownership of the restaurant space to McDade. Cantrup also agreed to expand the restaurant space, con - dominiumize it, and convey condominium title to McDade. Schiffer contended that the restaurant sublease was assigned to Cantrup in 1982, which was disputed by McDade. In the bankruptcy proceedings, Schiffer requested authorization under 11 U.S.C. 5365 to reject the agreement for sale of the restaurant space, and the sublease. McDade did not oppose the rejection of these agreements, but claimed that he was a 'purchaser in possession of the restaurant space who was enti- tled to have title conveyed to him pursuant to 5 365(i) On April 9, 1984, McDade assigned his contractual interests' to Commerce for the sum of $1,500,000. Since these interests will merge with title to CRI: I • the underlying -real property if title is conveyed to Commerce -as contemplated by ;the Plan, no litigation currently is pending on this matter. H. B • . R •D CLAIMS ACQUIRED By C OMM Commerce, which is both the prospective purchaser of the Debtors' properties and the Estate's post- petition lender, has become the largest creditor in the Debtors' bankruptcy proceedings. In May, 1983, Commerce loaned money to the Estate to redeem properties sold at foreclosure sale, and acquired the lied positions of the creditors paid through redemption. Since that time, Commerce has acquired other, lien positions through direct assignment by pre - petition creditors. The',iollowing is a summary of the lien positions which have been acquired by Commerce: Pre - petition Creditor Secured Property Pre- petition Balance Jonathan Bulkley 2nd lien'on Chase 307,473.00 and 3rd .lien on' Blue Spruce Jonathan Bulkley, 1st lien on 330,891.00 Bertram Kaufman;:; and Snowchase B (Top Allen Investment & Realty Co. of Mill) Cambridge Savings and Loan lst lien•;on Unit 159,887.00 Assoc. of Cambridge, Ohio 22, Aspen Inn Apts. Colonial Investment Corp. 1st lien on Chase 305,214.00 Duplex Design Group West, Inc. 'Empire Savings & Loan Assn. Employees Deferred Profit Sharing Trust of Chamberlain Real Estate, Troy, Michigan Farmers and Merchants Bank of Colby, Kansas Judgment lien -- 13,586.00 1st lien on 5,6471,118.88 portions of Aspen Meadows, 2nd on other portions 2nd lien on Chalet East 1st lien on Unit 33, Aspen Inn Apts. -10- 141,262.00 159,887.00 Pre- petition Creditor Secured pro,gerty First Nat. Bank of Aspen 2nd lien on Paas House First Nat. Bank of Aspen 3rd lien on Paas House Heritage Savings"Assoc. of 1st and 2nd liens Hays, Kansas on Summit Place Hill Country Savings and 1st lien on Unit Loan Assoc. 23, Aspen Inn Apts. Hill Country Sa.vIngs and 1st lien'on Unit Loan Assoc. 32, Aspen Inn Apts. Illinois /Service Federal 1st lien .on Unit Savings and Loan Assoc. 31, Asperi Inn Apts. IntraWest Bank of Denver 1st on Aspen Inn 2nd on Aspen Inn Apartments (6 units) IntraWest Bank of Denver Aspen Inn deficiency judgment lien IntraWest Bank of Denver Blanket lien on Chase Lots, Robinson Parcel, Blue Spruce, Snowchase A, Snowchase B, Spar, Barbee A, Barbee B, 700 Galena, 925 Durant, Aspen Mt. Mining Claims, Mine • Dumps, Summit Place, Koch Parcel IntraWest Bank of Denver Pre - petition Balance 234,939.00 183,470.00 805,551.00 159,887.00 159,887.00 159,887.00 3,420,120.54 1,462,897.39 5,493,996.29 Prospector Lodge 1,450,740.00 deficiency (cross- collateralized with properties covered by IntraWest blanket lien) -11- Pre - petition Pre- petition Creditor secured Property Balance Lester Luhnow 2nd lien�on 663,402.00 -- Minedumps Pamela F. McPherson 1st lien on 217,938.00 Snowchase A Northwestern Savings and 1st lien on 829,947.00 Loan Assoc. of Traverse Holiday House City, Michigan Peoples Savings. Bank of 1st lien.on 159,887.00 New Britain Unit 21, Aspen Inn Apts:, Platte Valley Federai. Savings lst lien on Paas 1430,914.00 and Loan Assoc. House Platte Valley Federal Savings 1st lien on 442,776.00 and Loan Assoc. Townepl ace Jerry Powell 1st lien on Blue 333,912.00 Spruce Powers Products Company Judgment lien 13,709.00 Prospector Lodge Partnership 1st lien on 721,057.20 Barbee B Prospector Lodge Partnership Barbee B 383,730.19 deficiency Judgment - lien Rocky Mt. Equity and 3rd lien on Chase 1820,505.00 Mortgage Co. Lots and 2nd lien on Snowchase B Roland International, Inc. 3rd lien on 1,000.00 Chalet East Roland International, Inc. Unsecured judgment 49,330.13 John B. Torinus, et al. 1st lien on 281,652.00 Unit 1 -C, Aspen Inn Apts. -12- Pre - petition Creditor John B. Torinus, et al. Wells Fargo Realty Advisors, Inc. .+s Unsecured deficiency 1st lien<on Continental Inn Secured: Unsecured: Pre - petition Balance 468,433.00 4,493,205.00 29,465,328.49 509,813.31 Commerce also; has acquired the cla-.m of Equinational Aspen Associates, which is. disputed by the Estate, having a pre - petition balance of $5,;000,000 and secured by all of the Estate's real property. Because of the dispute regarding; the validity of this claim, it has not been added to the total balance of secured claims noted above. ;:Commerce also has acquired the unsecured claim of James R. McDade, - .filed in the amount of $15,000 ",00`0 and disputed in large part by the Estate. Because of the dispute as to the amount of this claim, it has not been added to the total balance of unsecured claims noted above. In addition, Commerce has loaned the Estate approximately $200,000 under an operating line of credit authorized by the Court pursuant to 11 U.S.C. § 364, which is secured by a junior blanket lien on all property of the Estate. ... The .Plan proposes to sell the properties owned by the Debtors which are described below. A map indicating the location of the properties, is attached to the Disclosure Statement as Exhibit "A ". Opinions of value regarding each of the properties were prepared in September, 1984 by James J. Mollica & Associates, Inc., and these are summarized below. Mr. Mollica is a member of the American Institute of Real Estate Appraisers ( "M.A.I. "), and main- tains a real estate appraisal and consulting service in Aspen, Colorado. Mr. Mollica appraised most of the Debtors' properties for the Debtors at various times prior to the commencement of the Debtors' bankruptcy proceedings. In May and August 1983, Mollica & Associates prepared opinions of value for each of the properties at the request of Commerce, the prospective purchaser under the Plan. The more recent opinions of value summarized below were prepared at the request of Schiffer. The recent valuations are described by Mollica as an addendum to the May and August 1983 valuations. The opinions of value summarized below estimate the value of each parcel -13- as though it wa5.;;,separately marketed and separately developed. The values assume, a cash or near -cash sale with no development contingencies. The values assume marketing with an Aspen real estate firm pursuant to .a six to ten percent rea?: estate commission and sale within a twelve .month period. Commission: and costs of . sale have not been deducted from the estimated values. In his most recent valuation study, Mollica noted.that there are "many. unanswered questions" regarding the Estate's proper- ties, including' legal disputes and questions dealing with political and zoning interpretations. The recent valuations differ in many instances from-. the 1983 valuations performed by Mollica & Associates. Mollica stated that these differences primarily are the result of refinements in the appraiser's development assumptions rather than changes in the Aspen real estate market. In contrast to certain appraisals prepared earlier for the Debtors or Commerce under various development scenarios, the most recent valuations are based upon the apparisers' best interpretation of the highest and best use of the properties. These valuations supercede all previous valuation studies performed by James J. Mollica &Associates, Inc. 1. Continental Inn. The property is a hotel and restau- rant operation located at the base of Aspen Mountain, in what Mr. Mollica describes as Aspen's "100 percent location." The land parcel is 42,422. ,.square feet. The hote; includes 165 rental units plus 11 employee units. The improvements total approximately 64,116 square feet, and are described as being in fair to average repair. Employing both an income approach and a comparison to recent market transactions, Mollica opined a value of $6,500,000. 2. 2aaa House. The property is a 9,000 square foot lot located adjacent to the Continental Inn. It is improved with a single family residence containing approximately 2,366 square feet, in poor to fair condition. The underlying zoning would permit devel- opment of two duplex units. Mollica opined a value of $550,000. 3. Chase Dupj=. The property is a 5,892 square foot lot, located one half block from Aspen's commercial core and the Aspen Mountain ski slopes. It is improved with a five bedroom duplex con- taining 2,851 square feet, in poor to fair condition. The property is zoned for commercial and lodge units. Mollica opined a value of $500,000. 4. Lots. The property is an unimproved lot of 12,022• square feet, located adjacent to the Chase Duplex and with potential for development of commercial and lodge units. Mollica opined a value of $1,000,000. -14- sr 5. Robinson Parcel. The property is an unimproved lot of 8,350 square feet located adjacent to the Continental Inn. Separately developed, the property is appropriate for development of two large. duplex units. Mollica opined a value of $550,000. 6. Towneplace. The property is a 3,120 square foot lot located adjacent to the Chase Duplex. It. is improved with a building containing 2,770 :square feet, used for apartment and commercial uses, and is in fair condition. Mollica opined a value of $625,000. 7. open Inn. Together with the Aspen Inn Apartments, the property is a lot estimated to be 72,707 square feet. It is located adjacent to the Continental Inn and is a prime development location. The property is: :improved with a restaurant and 24 unit lodge contain- ing 13,175 square feet. The restaurant is in good condition, and the lodge units are,-in poor to fair condition. Mollica opined a value in the amount of. $1;2.00,000 for the existing lodge units and restaurant. The property also is the site of a 68 unit addition con- taining 44,460 square feet of lodge units, 11,115 square feet Mollica opined-- a—v-alue of $700,_0... n commorci area containing, meet. j The addition variously has been estimat`e�Ic- as'�eing 54 to 80 percent complete.. Construction of the addition was halted by the City of Aspen in.January 1982 based on alleged non - compliance with land use approvals, and has been the subject of litigation since that time. Assuming an ability to complete the addition with 36 units as authorized by the City of Aspen, Mollica opined a value of $1,800,000. In addition, Mollica attributed an additional $1,100,000 of value to what,.he describes as the "Aspen Inn complex," comprising the Aspen Inn, the Aspen Inn Apartments, the Blue Spruce, the Aspen Inn parking lot, the Chalet East, and the Chalet West, based on addi- tional development potential of this larger site. 8. Aspen Inn Apartments, Units 21. 22, 23, 31, 32 and 33 . The property is located adjacent to the Aspen Inn, and consists of six two - bedroom units containing 930 square feet each. The units are in average condition, while the exterior is in poor to fair condition. The units have been condominiumized and are able to be separately sold. Based on comparable sales, Mr. Mollica gave an opinion of value Mollica opined a value of $780,000 for the six units. 9. Aspen Inn Apartments, Unit 1 -C. The property is located south of -the six unit building, and consists ,of one basement unit containing 600 square feet. Mollica opined a value of $50,000. -15- 10. due Spruce. The property-"is a 27,000 square foot lot located adjacent;to the Aspen Inn. It is improved with a 33 unit lodge and a two bedroom apartment totalling 13,600 square feet. The improvements are described as being in, fair condition. Mollica opined a value of $1,200,000. 11.' Alen Inn_ ,parking lot. The property is a 12,,500 square foot parcel adjacent to the Aspen Inn and the Blue Spruce, and is unimproved. Mollica opined a value of $900,000. 12. valets East and West. Each Chalet is located on 6,000 square foot lots adjacent to the Aspen Inn. Each Chalet con- tains four bedrooms and totals 1,994 square feet. Mollica opined a value of $550,000 for each Chalet, for a total of $1,100,000. 13. !D_Q South Galena. The property is a 22,727 square foot lot located across from the Continental Inn, and is unimproved. Mollica opined a value of $1,000,000. 14. .Summit place. The property is an approximately 9,410 square foot lot located near the Aspen Inn. It is improved with two partially completed units of approximately 2,100 square feet each. One unit is approximately 85 percent complete and the second unit is approximately 40 percent complete. In. addition, foundations for an additional two units have been poured. Some weather damage has occurred. Estimating the market value of two completed units less costs of completion, marketing, and developers' profit, Mollica opined a value of $800,000. If the third and fourth units could be completed, Mollica opined' a value of $1,400,000, while expressing doubts regarding this development scenario. 15. o iday House. The property is a 15,750 square foot lot located outside the hotel site assemblage, three blocks from. Aspen's commercial core. It is improved with a 15,000 square foot building containing 20 rental units and six employee units, and is in fair to average condition. Employing both an income approach and a comparison to recent market transactions, Mollica opined a value of $700,000. 16 Minedumps. The property is a 41,250 square.f oot lot located outside the hotel site assemblage, but near the Aspen Mountain ski slopes.. It is improved with 20 rental units in poor condition. The value in the units is their location and their abil- ity to be demolished and reconstructed. Mollica opined a value of 52,500',000. 17. Snawchase A. The property is a 12,994 square foot lot located at the base of Aspen Mountain. It is unimproved but is zoned OT-C to permit development of lodge units or multi - family condominiums. Mollica opined a value of $900,000. 18. Snowchase B. The- property- is a 13,430 square foot lot, adjacent to Snowchase A, and is unimproved. It has development potential similar to Snowchase A. Mollica opined a value of $900,000. 19. Koch Lumber Parcel. The property is a 62,455 square foot undeveloped lot, located in Aspen approximate) one -half mile from_As.gPn Ma ni=_din and the hotel si ' _e.,�o ica opined a value of ,000. 20. bee A. The property is an approximately 31,500 square foot unimproved lot located near the Minedumps adjacent to the Aspen Mountain ski slopes. It has development potential simi- lar to the Snowchase parcels. Mollica opined a value of $1,500,000. 21. Barbee B. The property- is an approximately 18,000 square foot unimproved lot located adjacent to Barbee A, and has similar development potential. )Mollica opined a value of s1,000,000. 22. Top of Mill. The property is an unimproved parcel comprising approximately 211,446 square f:et, located at the base of the Aspen Mountain ski slopes in what Mollica describes as Aspen's "100 percent location." Approximately 98,130 square feet is zoned Conservation, the most restrictive zoning classification in Aspen, allowing development of one single family residence with a minimum lot area of ten-acres. Approximately 79,056 square feet is zoned R -15, permitting. development of duplex or single - family housing. Approximately 50,490 square feet is zoning- L-- 2- ,-- pe- r- �- imulti- f 1y. con -ftm ni -um-o - odge-dev -elo_pmen-t. Reviewing conceptual devel- ment approvals given by the City of Aspen to Commerce for parcels including Top of Mill but also including parcels owned by Commerce BPr han the estate, Mollica opined a value of $3,000,000. 23. Aspen Mountain Mining Claims. The Aspen Mountain Mining Claims actually include Top of Mill and Spar, but refer herein to the mining claims not included within Top of Mill and Spar. The property is located on Aspen Mountain, above Top of Mill and Spar, and totals approximately 135 acres. Ownership of the claims include both surface and subsurface rights, and is equivalent to a fee simple estate. Mollica opined a value of $550,000. 24. Aspen Meadows. The property consists of approximately 88 acres located northwest of the Aspen commercial core away from Aspen Mountain. The property is improved with several structures, -17- • but is considerably underdeveloped. Mol ica opined a value .of $5,000,000 for the existinq _condominium- -hits and commercial ice.. In considering the additional value whiOL_shculd b_ t ibute -d the w-aperty--dne- to- dev-elo -pment potential; Mollica. noted that the Asper: Meadows is probably the most difficult of the Estate's properties to value, because it has been designated a specially planned area which lacks any definite guidelines regarding density, type of development or size requirement. In addition, Mollica noted that development of the property is highly sensitive from bolt :a political and community standpoint, since for the past thirty -five years the property has served as "the academic arena for Aspen." !Mollica considered several: alternative development scenarios, including a "Blue Ribbon Committee" report recommending development of up to 200 bedroom: (including the 92 existing bedrooms) ; a residential rezoning to R -6' or R -15, which has been contemplated by Commerce; and a residential rezoning to R -30, which has occurred in several nearby subdivision. areas. Analyzing these scenarios, Mollica opined a value of $3,000,000 for the undeveloped land. The total value of the Aspen/ Meadows was_ 58,000,000 in Mollica's opinion. 25. Summary of Mollica Valuations. Continental Inn $ 6,500,000 Paas Douse 550,000 Chase Duplex 500,000 Chase Lots 1,10.0,000 Robinson Parcel 550,000. Towneplace 625,000 Aspen Inn (including "Aspen Inn Complex" additional development potential) 4,100,000 Aspen Inn Apartments (6 units) 780,000 Aspen Inn Apartments (Unit 1 -C) 50,000 Blue Spruce 11200,000 Aspen Inn parking lot 900,000 Chalets East and West 11100,000 700 South Galena Summit Place Holiday House Minedumps Snowchase A Snowcha.se B Koch Lumber Parcel Barbee A Barbee B Top of Mill Aspen Mt. Mining Claims Aspen Meadows 1,000,000 800,000 700,000 2,500,000 900 ,000 900,000 550,000 1,500,000 1,000,000 3,000,000 550,000 8,000,000 Total: $39,355,000 B. ALTERNATIVE NUYSTS OF VALUE OF HOTEL SITE AS AN AESE MB ,A ,F Several appraisers have considered whether the Debtor's properties may have a value greater than the sum of their parts, since many of the properties are contiguous and comprise assemblages which may permit a large -scale hotel development. In April 1984, Ralph F. Clark & Associates, Inc. appraised the hotel site located at the base of Aspen Mountain at the request of the Debtors. The appraisers made certain assumptions regarding the value of a completed hotel on this site, and then subtracted the estimated costs of developing that hotel, including construction costs, financing costs, and developer's overhead and profit. The remaining value was labelled the "land residual," which was an esti- mate of the fair market value of the raw land in the hotel site. Using this technique, Clark & Associates concluded that the hot 1 site included in Commerce's .- ��IL�D 3ppli��tion had a current fail market - value- of- $40_.,Q_00,009`). The appraisers noted t at the P.U.D. application inclides parcels not owned by the Estate, estimated an acquisition cost ,of $1,100,000 for those parcels, and accordingly adjusted th e v al_ue- _.- .of- --t -h a - -E s- ta- te- l�- h-at- el -s -i -t e- pro - per -- ties. - -t o $38,900,000. contrast, Mollica's parcel -by- parcel appraisal set -19- 0 f -or-t-h i-n the pre -cLding section estimates a total fair.. market value of $17,955,000 f9rth- e__h9tel site propertie:34 In preparation of this disclosure statement, Schiffer asked James J. Mollica & Associates, Inc. to comment on the appraisal of the hotel site by Clark & Associates. rlollica noted that the Clark appraisal assumed the ability to develop a 500 unit hotel on the site. Mollica stated that this assumption was questionable, since Commerce has been processing a Planned Unit Development application with the City of Aspen and has received conceptual approval for only 447 units. However, the 500 units assumed by Clark & Associates were smaller and, of a different configuration than the 447 units approved by the City. Mollica also stated that the properties included in Commerce's P.U.D. application include several parcels which are not owned by the Estate, suggesting that a hotel which could be developed on the Estate's properties alone would be smaller than 447 units. Mollica also stated that the Clark appraisal ;Wade "over- optimistic" assumptions regarding the costs of developing the hotel, employee housing requirements, the revenues to be derived from each room, and the expenses of operating the hotel. An adjustment of these factors would indicate a lower value for a completed hotel, and after sub- tracting costs of development, a lower "land residual value" would also be indicated. Schiffer also asked Mollica to - conduct his own analysis of the value of the Debtors' properties as assemblages rather than as separate parcels. Mollica concluded that the assemblage value was less than the value of the individual parcels. Mollica stated that this conclusion "was suprising to the appraiser q -, " bu de_ntif zed - several factQrG whic_t� _t3�1_,usion. First, a separate ,developm net of the individual parcels could largely be agcomplished, without the need for approvals by the City of Aspen. _/In contrast, the arge asse Tage develzspmen� must occur through' - Growth Management Plan and Planned Unit Development applications submitted to the City, as has been done by Commerce. This has resulted in extensive employee housing requirements and other requirements of the . City which will be expensive for the developer',and which will reduce the value of the large -scale development. Moreover, the processing of . GMP and PUD applications increases.the time needed to develop the large -scale project and results in a greater discount of value due to the large holding period. The valuation of the Estate's properties remains a matter of substantial dispute. Mr. Cantrup, for example, maintains that the Mollica appraisals understate the real value and that the Clark appraisal better states the real value. The preceeding summary of valuations is intended to describe the conclusions contained in -20- 0 recent appraisals, and does not necessarily reflect the opinion of any of the plan proponents. I.. . me; 015-1 u:... Appraisals are useful for determining a range of values, but in the final analysis they are merely opinions based upon assumptions. In many cases, the assumptions underlying. opinions of value are subject to so much uncertainty or conjecture that it is necessary to examine the assumptions and all of their permutations in order to understand what the appraisals represent. It is difficult to present such an examination in the context of a Disclosure Statement. However, it is possible to summarize some of the relevant considerations underlying any analysis of the value of the Debtors' properties. The Debtors' properties in most cases are undeveloped or underdeveloped, so that their value depends to a large extent on the ability to obtain development approvals from the City of Aspen. Assumptions regarding future development approvals are central to the opinions of value summarized above. In order to obtain development approvals in the City of Aspen, any development, other than single family housing, duplex housing, and certain other exempt structures, must not only comply with underlying zoning requirements, which at a minimum determine density, but must zlso compete for Growth Management Plan (GMP) allocations. Competitions are held once each year for the lodge, -commercial, and residential categories. The winner of each competition is entitled to the allocations available each year, which are 39 residential units,, 35 lodge units, 10,000 square feet of commercial and office space, in CC and Cl zones, 7,000 square feet of commercial and office space in NC and SCl zones, 4,000 square feet of commercial and office space in the 0 zone, and 3,000 square feet of commercial and office space in CL and all other zone districts. Those numbers may be revised upward or downward depending upon many factors in any given year or any given competition. Multi- family developments as well as any other developments involving con - dominimization or division of ownership interests require subdivision approval. Large projects in sensitive areas, such as the hotel site assemblage and Aspen Meadows, are generally required to be processed as Planned Unit Developments. The several layers of approvals required, the complexities inherent with respect to each, the length of time required for each, and the uncertain political climate in Asp -gin create risk factors for potential developers which cannot be minimized in any analysis of value. Considerations of this nature are- exacerbated by the fact that if all of the properties were marketed simultaneously, not only -21- I i '1v would supply and demand have an adverse''offect on prices, but the competitive nature of the GMP process would tend to further depress price since the risk of not being able to win allocations and thus develop in the near future increases as the number of potential purchasers /competitors increases. �fie Debtors' properties represent a signif ican- rtion of th otal developable property in Aspen.. Both the hotel siteassercr age and Aspen Meadows are located in extremely sensitive parts of Ke th City, and any proposed development of- either the assemblage or Meadows will be subjected to close scrutiny and varied political cons`,:-derations. Political sensitivities relative: to the hotel site assem- blage focus primarily on the fact that, the assemblage represents the last site in Aspen particularly suited to a "world class" hotel facility. Given the tourist economy and the obvious lack of first class lodging facilities, any prospective purchaser and /or developer must be aware of those sensitivities and the rigorous scrutiny any development proposal would certainly encounter. Concomitant.with such scrutiny are the obvious time delays and concessions to the vagaries of local public opinion. Potential hotel operators such as the Broadmoor and the Registry have informed the City Council that they would require a minimum number of units as well as certain ame- nities as a prerequisite to their consideration of entering into a management agreement. A development proposal for part or all of the hotel site which did not provide for those minimum requirements would jeopardize the ultimate success of the hotel operation. Commence, as contract purchaser of the properties, is currently processing Growth Management Plan and Planned Unit Development applications with the City of Aspen. Commerce's applications originally sought approval for 480 hotel units. The City has given'a conceptual approval for 447 units. Commerce has yet to obtain preliminary or final approvals on its PUD applications, and these approval stages could result- n further modification of the project size. Commerce's experience to date emphasizes the City's concern for the _type _pize and qualms of development whi_ch._w- il_l- be__pgrmitted. ithough the result s -to date are by no means conclusive, one could reasonably conclude that the City's conceptual approval probably represents the maximum number of units which would be permitted in the foreseeable future. Although that should not affect the appraised "as is" values, it may have a Degative effect on "speculative" development assumptions. ily on t number o upon the for all Any valuation analysis of the As Mea ows focuses primar- he fact that the property is virtually unzoned and that the f units which would ultimately be,--permitted to be developed property would depend upon the adoption of a precise plan of the property. The Aspen Meadows Advisory Board, which was -22- created by -the Aspen City. Council for the purpose of reviewing and making recommendations on all proposed plans and uses of the Asperi Meadows property, recommended in September 1981 that any proposed development be limited to 200 bedrooms including what is presently existing and 5 additional single family home sites with a limitation of 275,000 square feet for the total building mass. Any proposed development would have to meet the needs :of the Aspen Institute for Humanistic Studies, the Music Associates of Aspen, Aspen Center for Physics, as well as the various special interest groups and homeowners' associations which are very sensitive to any proposals regarding the Meadows property.. Ownership of the Meadows property separate from the owner- ship of the hotel site properties creates the prospect for two extremely large development proposals bellig presented to the Aspen City Council at the same time and the marketing of a relatively large number of similar type units 'at the same time. Given ' that the devel- opment of the hotel site properties is, and of necessity must be, proceeding rapidly due to economic considerations, that factor might have a negative impact on the marketability and the value of.the Meadows property as a separate parcel. The following is a summary of the liens held against each of the Debtors' properties, listed in order of priority. The classi- fications employed by the Plan are listed with each lien. Except where noted, interest on each lien is accrued to November 1, 1984, without regard to whether the value of the property would permit post- petition interest accrual pursuant to 11 U.S.C. § 506(b). In the case of liens secured by more than one property, the liens and their dollar values are listed immediately following the summary of properties and lien priorities. Liens held by Commerce are noted with the pre - petition claim holder in parentheses. The summary is not definitive with regard to the priority of mechanics' liens, due to uncertainties regarding the date to which such liens may "relate back" in accordance with state law. A -1 Commerce A -41 Randles Mechanics (Wells Fargo) liens A -32 Commerce (EquiNational) A -43 Garfield & Hecht -23- 6,000,997 225r323 12,000 (estimated; some are disputed) 0 Baas A -23 House Commerce (Platte Valley) A -12 Commerce (First Nat. Bank Aspen- - loan also secured by real estate and equipment which is not property of Estate) A -13 Commerce- (First Nat. Bank Aspen) A -32 Commerce (EquiNational) Chase A -2 Duplex Commerce (Colonial) A -38 Colonial A -32 Commerce (EquiNational) Chase A -39 Lots Langenkamp A -4 Commerce (Bulkley -- also secured by Blue Spruce) A -5 Commerce (Rocky Mt. Mortgage also secured by Snowchase B) A -10 Commerce (IntraWest blanket and Prospector deficiency A -32 Commerce (EquiNational) A -43 Garfield & Hecht Robinson Parcel_ A -10 Commerce (IntraWest blanket and Prospector deficiency A -32 Commerce (EquiNational) A -43 Garfield & Hecht _- Towneplace A -24 Commerce - (Platte Valley) • A -32 Commerce (EquiNational) -24- 168,704 279,317 283,986 402,4.28 190 ,584 71,733 554,190 • Aspen A -7 Inn Commerce ,(IntraWest -- excluding parking lot) Mechanics liens A -36 Kaufman /Buckley (1st on parking lot only -- also secured by Blue Spruce) A -32 Commerce- (EquiNational) Aspen Inn Apartments, Units 21; 22& 23 .' 31 , 32, 33 A -19 Commerce - (Peoples Savings - -lst on Unit 21) A -17 Commerce (Cambridge Savings- -lst,. on Unit-22) A -22 Commerce (Hill Country - -lst on Unit-23 A -20 Commerce °(Illinois /Service - -1st on Unit 31) A -21 Commerce (Hill Country- -1st on Unit 32) A -18 Commerce (Farmers and. Merchants-'.-- 1st on Unit 33) ti 7 Commerce (IntraWest- -2nd on 6 units also secured by Aspen Inn) A -32 Commerce-(EquiNational)--all 5 units) AEPen Inn Apartments. Unit 1 -C A -15 Commerce (Torinus) 'Blue Spruce A -3 Commerce (Powell) A -35 Kaufman /Bulkley -(also secured by Aspen Inn parking lot) A -4 Commerce (Bulkley -- also secured by Chase Lots) A -10 Commerce (IntraWest blanket and Prospector deficiency) A -32 Commerce (EquiNational) A -43 Garfield & Hecht -25- 4,421,116 325,000 (estimated; - some are disputed) 187,647 187r647 187,647 187,647 1.87 ,647 187j,6 47 281,652 442,286 • Chalet A -34 East Central Pennsylvania Savings A -14 Commerce :(Chamberlain) A -27 Commerce (Roland Int.) A -32 Chalet Commerce (EquiNational) A -35 West Peoples Savings A -32 700 South EquiNational A -10 Galena Commerce (IntraWest blanket and Prospector -deficiency) Mechanics liens A -32 Commerce (EquiNational) A -43 Garfield & Hecht 925 Durant A -10 Commerce (IntraWest blanket and Prospector deficiency) A -32 Commerce (EquiNational) A -43 Garfield & Hecht Summit A -25 Place Commerce .(Heritage Savings) Mechanics.-liens A -10 Commerce (IntraWest blanket and Prospector deficiency) A -43 Garfield & Hecht A -32 Commerce (EquiNational) Holiday A -16 House Commerce (Northwestern Savings) A -32 Commerce (EquiNational) -26- 182,427 188,921 1,145 483,606 40,000 (estimated) 1,016,084 200,000 (estimated) 1,061,356 1 Minedumps A -40 Preusch A-32 A -6 Commerce (Luhnow) A -10 Commerce (IntraWest blanket and Commerce (IntraWest blanket and .Prospector deficiency) A -32 Commerce (EquiNational) A -43 Garfield & Hecht Snowchase A Commerce (McPherson) A -26 A -10 Commerce (IntraWest blanket and Prospector def iciency) A -32 Commerce (EquiNational) Snowchase B Commerce (Bulkley) A -8 A -5 Commerce (Rocky Mt. Mortgage -- also secured by Chase Lots) A -10 Commerce (IntraWest blanket and Prospector deficiency) A -32 Commerce: (EquiNational) Koch_ Lumber__ Parcel A -10 Commerce (IntraWest blanket and -27- 255,320 884,893 240,831 458,054 560,000 (approx.) 925,076 Prospector deficiency) A-32 Commerce (EquiNational) A -43 Garf ield & Hecht Barbee A -84 A Barbee A -10 Commerce (IntraWest blanket and Prospector deficiency) A -32 Commerce (EquiNational) Barbee A -28 B Commerce (Prospector Lodge Partnership) A -10 • Commerce (IntraWest blanket and Prospector deficiency A -32 Commerce (EquiNational) -27- 255,320 884,893 240,831 458,054 560,000 (approx.) 925,076 S A -10 Commerce (IntraWest blanket and Prospector deficiency) A -43 Garfield & Hecht A -32 Commerce (EquiNational) Aspen A -10 Mt, Mining Claims Commerce (IntraWest blanket and Prospector deficiency) A -32 Commerce (EquiNational) A -43 Garfield, & Hecht Aspen A -37 Meadows Aspen Instittte (lst and 2nd) 2,421,947 A -9 Commerce (Empire-2nd 7,539,880 and 1st) A -32 Commerce (EquiNational) A -44 Classic Realty 275,000 (estimated & disputed) A -42 Cargill 29,945 A -43 Garfield & Hecht A -85 Shaffer 91,500 The balance of the liens secured by more than one property, together with interest accrued to November 10, 1984, are as follows: A -4 Commerce (Bulkley) 452,207 A -5 Commerce (Rocky Mt. Mortgage) 238,039 A -36 Kaufman 919,916 A -43 Garfield & Hecht 600,000 (estimated & -disputed) ,A -10 Commerce .(IntraWest blanket) 6,787,038 • A -10 Commerce (IntraWest /Prospector deficiency) - 1,864,786 A -32 Commerce (EquiNational) 5,000,000 (disputed) In addition to the liens mentioned above, the following liens constitute encumbrances against all of the properties of the Estate. A -46 Hindry &,. Meyer Judgment Lien 9,354 10/20/82 .M 0 A -47 A-86 A -29 A -11 A -3 0 A-48 13 Business & Office Systems Contemporary Furniture Commerce (Prospector Lodge Partnership) Commerce (IntraWest) Commerce (Powers Products) Radio Paging of Aspen A -31 Commerce (Design Group West) A -33 Commerce IV. THE PLAN OF REORGANIZATION A. THE SALE AGREEMENT Judgment lien 1/•x/83 Judgment lien 1/17/83 Judgment lien Judgment lien 3/3/83 Judgment lien 3/4/83 Judgment lien 3/4/83 Judgment lien 3/9/83 Post - petition loan pursuant to 11 U.S.C. § 364(c)(3) 418 52,111 441,682 1,154,637 15,590 5 s,3 G - -5 15,458 255r677, The Def initive Agreement for the Purchase and Sale of Real Property ( "the Sale Agreement ") entered into by the Estate and Commerce on September 30, 1983, and amended on November 22, 1983, January 25, 1984, March- 22, 1984, April 11, 1984, May 7, 1984, and August 27, 1984, forms the basis for the Plan of Reorganization ( "the Plan "). A copy of the Sale Agreement, in restated form to reflect all previous amendments, is appended to the Plan which is attached hereto as Exhibit "B." The Sale Agreement, as amended, provides for the payment of $9,150,000 cash to the Estate at the time of closing. In addition, Commerce shall release most of its claims against the Estate. As additional . consideration, Commerce also shall agree to transfer one lot at the Aspen Meadows to the Estate if and when subdivision approval is obtained for that property. Th.-_ cash and other consider- ation received by the Estate shall be applied first, to claims secured by liens against the properties to be transferred to Commerce; second, to claims entitled to priority under 11 U.S.C. -29- 507; and third, to general unsecured claims. The funds paid to the Estate will be insufficient to fully satisfy general unsecured claims. In addition, Commerce will pay certain cash and other cor- sideration to the Debtors. For a more detailed summary of distribu- tion under the Plan, see Section IV.D., infr .� In exchange for the cash payment, release of claims, and other consideration from Commerce, the Estate will transfer to Commerce, free and clear of all liens and other interests pursuant to 11 U.S. C. S 363(f) , the real property described in Exhibit A of the Sale Agreement*- in addition, the Estate will transfer to Commerce the business assets described in Paragraph 1 of the Sale Agreement., including improvements to the real property, personal property used in connection with the operation of the improvements, and certain contractual rights, water rights, licenses, and documentary. information. 1. Estimated value of claim release. Paragraph 2(c) of the Sale Agreement specifies certain claims which are held by Commerce as to,! which Commerce will release the Estate at the time of the closing. This release of claims is the largest part of the total consideration to be received under the Sale Agreement. The following table lists all of the secured claims included in.. the release, employing the classifications used in the Plan. To the extent that the value of the property securing each claim exceeds the claim bal- ance, thereby permitting post - petition interest accrual pursuant to 11 U.S. C. § 506(b) , interest has been accrued to November 1, 1984, which is used as a hypothetical distribution date. Where the value of the property securing a claim is less than the pre- petition bal- ance of the claim, the undersecured portion of the claim is listed as unsecured. To determine whether claims are over - secured or under - secured, reference has been made to the valuations of James J. Mollica, M.A.I., listed in Section III.A. supra. Commerce does not necessarily agree that the following table accurately reflects the total amount of its secured claims, to the extent that the secured claim balances are determined according to Mollica's valuations. Claim number Unsecured portion Secured portion A -1 6,000,997 A -2 402,428 A -3 442,286 A -4 452,207 A -5 238,039 A -6 884,893 A -7 41100,000 A -8 458,054 -30- A -9 7,539,880 A -10 8,651,.824 A -11 1,154,637 A -12 279,317 A -13 81,491 101,979 A -14 q 188,921 A -15 23:1`,652 50,000 A -16 129,947 700,000 A -17 29,887 130,000 A -18 29,887 130,000 A -19 29,887 130,000 A -20 29,887. 130,000 A -21 29,887 130,000 A -22 29,887. 130,000 A -23 168,704 A -24 554,190 A -25 5,551 800,000 A -26 240,831 A -27 1,145 A -28 - 925,076 A -29 441,682 A -30 15,590 A -31 15-,458 A -33 255,677 627,963 35,843,815 The release of the above secured claims is subject to an exception provided by Paragraph 2(c) of the Sale Agreement. Interest on the May 21, 1983 redemption loans and credit line (claims A -1, 2, 3, 4, 6, 8 and 33) which was accrued but unpaid as of May 7y 1984 -is not released. This interest, which is included in the above secured claim balances, totals $307,496. When subtracted from the secured claim total, the secured claims released by Commerce total $35,536,319. Commerce also holds an unsecured claim as assignee of Roland International in the amount of $49,330, and a second unsecured claim as assignee of John B. Torinis, et-al., in the amount of $468,433. These claims are included in the claim release. When these unsecured claims are added to the undersecured portions of secured claims, the unsecured claims of Commerce total $1,145,726. Commerce holds two additional claims of major significance, which also are included in the claim release. The first is the secured claim of EquiNational Aspen Associates, filed in the amount of $5,000,000 and acquired by Commerce at a cost of $1,250,000. The second is the unsecured claim of James R. McDade, filed in the amount -31- of $15,000,000 and acquired by Commerce at a cost of $1,500,000. Both of these claims, prior to the assignment to Commerce, were dis- puted by the Estate and were the subject of litigation which was unresolved at the time of the assignment. The EquiNational claim, discussed in Section II. G. 2 tea, has been disputed in full by, the Estate. In order to produce a conservative estimate of the claim release, no value has been included on account of the EquiNational claim, although Commerce dof s not concede that the claim has no value. However, to the extent that EquiNational's claim might be adjudicated valid in whole or in part:, the release of : this claim has value. Moreover, the claim release makes unnecessary the litigation of the claim by the Estate, and results in a savings of administrative expenses. The McDade claim, discussed in Section II. G. 3, includes a contractual obligation in -the principal amount of $450,000, and damages stemming from the rejection of several execu- tory contracts. While the damage portion of the claim may have some value, it is disputed and is not included in the claim waiver in order to produce a conservative estimate. The contractual obligation of $450,000 has not been disputed and is included in the total of Commerce's unsecured claims, bringing the total to $1,595,726;. Under any alternative, all -cash sale,, Commerce would be entitled to the satisfaction of its secured claims to the extent of $35,552,111, and therefore these claims are included dollar -for- dollar in an estimate of the value of the claim release. The value of the unsecured claim release is more difficult to estimate. Since these claims would be entitled to share .pro- re-t:a in the anticipated distribution to the class of unsecured creditors, the release has value. This Disclosure Statement, at Section IV.' D. 5 infra, estimates that the Estate will distribute approximately $1,740,000 to general unsecured claims totalling an estimated $3,000,000, for a pro -rata distribution of 58 %. If the unsecured claims of Commerce were added to the remaining claims, unsecured claims would total approximately $4,600,000, the pro -rata distribution would be 38 %, and Commerce would receive approximately $608,000 on its unsecured claims. This. figure provides an estimate of the value of the unsecured claim waiver. 2. .er consideration to be given by Commerce to the Fatate. Paragraph 2(e) of the Sale Agreement provides that, as addi- tional consideration, Commerce shall convey to the Estate one single family homesite lot on the Aspen Meadows property, following final approval by the Aspen City Council of Commerce's subdivision plan for that property. Pending this conveyance, Commerce shall deliver a- -32- 0 CJ .promissory note in the amount of $300,000, increasing to $345,000 one year after the._.closing of the sale to Commerce, and to $400,000 two Years after the -closing. Commerce must, at its choice, either convey the lot within three years of closing or pay the amount due under the note.. The lot has an estimated value ir:. excess of $300,000, but the value will be conservatively estimated herein at $300,000. 3. . , Estimate of_ the_ effective sales price under the PJI.an. The aggregate of the cash, claim waivers, and property to be received from Commerce pi:ovides an estimate of the effective sale price under the Plan: Cash 9,150,000 Secured claim waiver 35,536,319 Unsecured claim waiver 608,000 Meadows lot 300,000 45,594,319 In addition, Commerce has agreed to pay certain cash and other consideration to the Debtors. See Section IV.E. sum. IT FINKSTOR Commerce's purchase of the Estate's properties is contin- gent on satisfaction of two conditions set forth at Paragraphs 3 and 9 of the Sale Agreement. These conditions must be satisfied on or before November 15, 1984, except to the extent that Commerce elects to extend that deadline or waive the conditions. The first condition is the entry of a court order evicting K.C.B. Restaurants, Inc. from possession of a restaurant leasehold space located at the Continental Inn. Schiffer believes that K.C.B. has breached its lease agreement and that the agreement may be terminated. K.C.B. contends that it is not in default and may not be removed. Schiff er has initi- a-t -ed--1 ega procee rigs -t terminate the lease and evict the tenant. The second condition is the resolution of five pending law- suits against the City of Aspen filed by the Debtors prior to the initiation of bankruptcy proceedings (collectively referred to as "the city lawsuits") . Three of the lawsuits concern actions of the city related to a-construction project at the Aspen Inn (see Section I,) . One lawsuit seeks to reverse a decision of- the Aspen City Council to deny certain proposed amendments to a 1978 Growth Management Plan ( "GMP ") regarding the.Aspen Inn. A second lawsuit seeks to reverse -the Aspen Director of Planning Is decision to rescind a 1982 GMP allocation with respect to the Aspen Inn. A third lawsuit seeks to cancel a stop work order issued by th-e'Aspen -33- Building Inspector which shut down the Aspen Inn construction project. Schiffer has negotiated a settlement of the lawsuits which satisfies this .condition, and is seeking Court approval of the settlement. The settlement provides for'; the dismissal of all claims of the Debtors, dismissal of a- counterclaim by the City seeking to void the Debtors' 1978 GMP allocation of ,36 lodge units, verification by the City that. the Debtors have 275 existing lodge units in the hotel site, and ,cancellation of a parking lot agreement involving the Woodstone Inn that inhibits development of the Chase Lots. The set- tlement involves no cash payments either by or to the Estate. The settlement resolves several conditions in. the Sale Agreement. The fourth lawsuit :challenges the City's zoning classification of the Koch Lumber parcel. The fifth lawsuit challenges the "City!s zoning classif icationof the Aspen Meadows. These lawsuits are to be dis- missed by the Estate. Schiffer is seeking court authorization for the dismissals. A third condition requires that the Plan be confirmed by final order of the Bankruptcy Court. A fourth condition requires the Estate to assume or reject various unexpired leases and executory contracts listed on Exhibit D to the Agreement. All of the leases and contracts to be assumed involve the Aspen Institute for Humanistic Studies. Counsel for the Institute has :-reformed the Estate that the leases and contracts may be assumed and.:.assigned to Commerce, and that there is no cure required. The leases and contracts to be rejected include a lease with K.C.B. Restaurants, discussed above in connection with Paragraph 9. A parking space agreement with the Woodstone Inn Association, Inc. is the remaining agreement to be rejected. This agreement will be resolved at no cost to the Estate upon approval of the pending settlement agreement with the City of Aspen discussed above in connection with Paragraph 9. All property held by the Estate shall be distributed pursu- ant to the Plan, including proceeds realized from the sale to Commerce, but also including other assets not involved in the sale. The Estate has retained funds from the operation of its lodging facilities, which it is estimated will total approximately $425,000 at the time of the sale. At the sale closing, the Estate also will be entitled to a refund or credit for approximately $65,800 in util- ity deposits. . The Estate also will retain real property located at 925 Durant, Aspen, Colorado. The property is an unimproved lot 12,000 square feet in size. James J. Mollica, M.A.I., has given an -34- �J E opinion of value for this, property in the amount of $450,000. Net, proceeds of liquidation are estimated a44 t When the assets listed above are added to the sale proceeds of $9,1501,000 and the Aspen Meadows lot valued at $300,000, there is approximately $10,340,800 available for distribution to the claims not included in Commerce's claim release. The Plan contemplates an Order of the Bankruptcy Court authorizing a sale of real and personal = property free and clear of liens pursuant to 11 U.S.C. S 363(f). When title to the property passes to Commerce, Commerce will -del iver -t-o -the Es -torte the sum of Vr�o­p"6`ffy-tax6s 150,000, subject .�s� osing adjustments including satissfa-ction --F prorated to the date of closing, credit for accrued Lalicable. unpaid wages, utility charges, prepaid rents and deposits, and of one -half of the City of As n real estate transfer tax, if axes are estimate to o a , ie date of c sing. The Estate disputes the applicability of real estate transfer taxes to this transaction. The second major closing adjustment concerns the May 1983 loan from Commerce to the Estate, used o redeem properties from foreclosure sale and for operating expenses (see Section II. B. supra) . Commerce has agreed to waive the principal balance and interest reserve, a total amount of $8,000,000, together with inter- est accrued on the loan since May 7, 1984. However, interest on the. loan in excess of the interest reserve and accrued prior to May 6 1984 totals $307,496. This obligation has not been waived and is entitled to administrative priority. ThiF, obligation shall be cred- ited against the.purchase price at the closing. Other closing adjustments are believed to be relatively insubstantial. However, the Estate is also contractually obligated to pay up to $50,000 for a title insurance policy. Total closing adjustments and costs therefore are estimated to total $977,496. 1. Secured claims. The Plan's effective date occurs seven days after the closing of the Sale Agreement with Commerce. On the effective date, the Plan generally provides for the satisfaction of the allowed secured claims of holders of liens on the properties sold to Commerce, which are not disputed by the Estate or other parties in interest on or before the effective date of the Plan. These claims are summarized as follows: r -35- -36- Principal plus Plan classification Claim holder interest accrued to _loverLiber 1, 1984 A - -37 Aspen Institute for 2,421,947 Humanistic Studies A -34 Central Pennsylvania 182,427 Savings of Shamokin A -35 People's Savings and 483,606 Loan Association of Parsons, Kansas A -36 Bertram Kaufman and 919 , 916 Jonathan Bulkley A -38 Colonial Investment 190,584 Corp. A -40 Preusch Properties 255,320 A -41 Burr and Marjorie 225,323 Randles A -44 Classic Realty approx. 275,000 A -43 Garfield & Hecht approx. 600,000 A -39 Arthur Langenkamp 71,733 A -42 Pat Cargill 29,945 A -85 Alan Shaffer 91,,500 • (as per stipulation) A -86 Contemporary Furniture 52,111 (as per stipulation) A -46 Hindry & Meyer 9,354 A -87 Clark Equipment approx. 7,500 -36- :xyjm Principal plus Plan c1_ass i f i ca ; on Claim m hot d interest accrued to November 1. 19Q4 A -47 Business and Office 419 Systems A -48 Radio Paging of 5,318 Aspen, Inc. A -56 Morgan & Associates 11,205 A -73 Sirous Saghotoles- _ 5,383 lami A -70 Colorado Supply Co. 1,357 A -59 Arvada Steel Fabri- 26,801 cating A -76 Graber Construction 41,505 Co. A -82 Claycomb Engineering 3,847 A -61 Viking Sales Inc. 2,423 A -62 Viking Sales, Inc. 8,614 A -54 Hahl -Kern 20,444 A -83 Gene Bishop 10,929 A -77 Dahl'Cement, Inc. 11,233 A-78 John Bowman dba 25 , 6 51 District Supply Co. . A -79 Designer Tile 9,678 Gallery, Inc. A -50 Welding Co. 4,858 A -51 Myers & Co. Archi- 4,732 tectural Metals A -80 Wheatridge Lumber 48,131 Co. :xyjm A -60 Sadeghi Associates 60,153 A -58 Lam -Wood 89,432 A -67 Ludwig Ritsch 13,511 A -75 Custom Home Elevator 41,408 A- 45,63,64,65,66 George Smith 43,467 A -52 Don lsen, Inc. �6� A -49 City of Aspen 2,745 A -53 Glenn's Enterprises i lea ed —� A -55 Basalt Electric Co. lien released Inc. A -57 Gerard Pesman lien released A -68 Ludwig Ritsch lien declared void A -69 Aspen Electric, Inc. lien declared void A -71 Aspen Blueprinting & lien declared void Supply Inc. A -72 Robert Pattillo lien released A -74 Hagman Yaw lien declared void A -81 Mountain Mobile Mix lien released • Total: 6 ,314 ,156 An additional secured claim held by John Barbee, Mary Barbee and Hallie Rugheimer (Class A -84) may not be paid in full from the sale proceeds. Instead, the note of the ., claimholder may be cured, the maturity date reinstated, and paid over a period of approximately three years in accordance with the terms of the note. Deferring payment of the note, which bears a low interest rate, per- mits the Estate to satisfy the note with a lesser expenditure. Alternatively, the claim may be paid with other secured claims in a compromised amount. Under either alternative, it is estimated that ZME • approximately $560,000 of sale proceeds will be needed to satisfy this note through deferred payments. The total of secured claims becomes $6,909,618 with the inclusion of this claim. Schiff er estimates that total secured claims will total no more than 56,825,000 as of November 1, 1984, due to the anticipated disallowance of some secured claims in whole or in part. The actual figure may be greater or less than this estimate. Under 11 U. S. C. § 506 (b) , f ully secured claims are allowed to accrue interest from the date- of the bankruptcy filing until the date on which the secured claim is satisfied. In the above table, it is hypothesized that secured claims will be satisfied on November 1, 1984, and interest is accrued to that date, unless otherwise stipu- lated. with the, „_claim holder. Section 506(b) may also permit fees, costs, and charges incurred by a fully secured claim holder to be recovered from the Estate, to the extent provided by any applicable agreement between the Debtors and the claim holder. However, requests for such compensation may. require application to the Bankruptcy Court, and Court review and allowance. For those claims above which have not been stipulated to by the claim holde,, b, the balances on November 1, 1984 have been com- puted by the Estate. Actual payoff figures will be confirmed with the claim holders prior to the closing of the sale. In the event that any claim is disputed by any party in interest, the claim will attach to the proceeds of the sale pending resolution of the dispute. If the claim is disputed only in part, the Estate will pay the undisputed portion and the balance of the claim will attach to the proceeds of the sale pending resolution of the dispute. 2. Ldmiinistra ive Priority Claims., The f ollowing is a summary of estimated administrative expenses entitled to priority pursuant to 11 U.S.C. 5 507 (a) (1) . Expenses have been estimated only for purposes of estimating distribution under the Plan. Actual pay- ment of administrative expenses shall, where applicable, be preceded by application to the Court, notice to creditors, and allowance by the Court. a. Attorneys' fees. Sherman & Howard, attorneys for Schiffer in the Debtors' bankruptcy proceedings, had accrued but unpaid fees and unreimbursed expenses of $214,528. through June 22, 1984. It is estimated that legal fees will continue to accrue at the approximate rate of $20,000.00 per month through the Plan confirma- tion date. For purposes of estimating distribution under the Plan, the sum of $300,000 has been allocated to Sherman & Howard. -39- • Lohf and Barnhill has been, authorized to represent the Debtors in the -!bankruptcy proceedings, and Thomas F. Quinn has been authorized to represent the Creditors' Committee in the bankruptcy proceedings. The sum of $65,000 has been allocated for these attor- neys for accrued but unpaid fees and unreimbursed expenses. Kerwin and Elliott claims that it is owed the sum of $31,000 for its representation of the Debtors in the bankruptcy pro - ceedings from March 22, 1983 through mid -May, 1983. No fee applica- tion has been filed with the Court, and no fees have been allowed as an administrative priority. Nonetheless, for purposes of estimating distribution under the Plan, the sum of $31,000 has been allocated for that law firm. b.� Accountants' fees. Several accounting firms have been authorize to perform work for the Estate, and have submitted claims for fees which remain unpaid. H. Clayton Williams, C.P.A,, was initially employed to be the Estate's accountant, but found the volume of accounting work generated by the Estate to be incompatible with his practice. He has continued to perform accounting functions on a non - exclusive basis. Mr. Williams' final application for fees and expenses has been allowed by the Court in the amount of $24,721. Daiby Wendland & Company, P.C. has been employed as the Estate's accountants since August, 1983. It estimates that its non - reimbursed fees and expenses, through. November 1, 1984 will total 4125,000. c.o Other professional persons. James R. McDade has submitted a.claim for $35,000 for consulting work performed from March 22, 1983 through May, 1983. James J. Mollica has been employed as an appraiser. He has accrued but unpaid fees and expenses estimated at $15,000 through November 1, 1984. _ d. Other administrative claims. Nasser asserted a claim in the amount of $99,375, related petition operation of a restaurant owned by the Estate. analyzed the claim and believes that nothing is owed d for expenditures of restaurant funds by Sadeghi for benefit. It therefore is estimated that no sale proc expended on account of this claim. -40- Sadeghi has to his post - Schiffer has ue to offsets his personal eeds will be a.. Wages. ,Unpaid wages' qualifying for priority treatment are estimated to total $1,692.80. b. Deposits. Substantial:_advance room deposits were received by the Debtors' corporation, Aspen Hotel Management, Inc., and applied to operating expenses prior to the filing of the Debtors' bankruptcy petition. At the time of the bankruptcy filing, approxi- mately $67,000 of unearned deposits had been disbursed.• On the Debtors' schedules, these claims were disputed on the grounds that the claims were-against the corporation rather than the Debtors. For reasons discussed in Section III.D.4., jafra, the Plan allows claims against the Estate regardless of whether they appear on their face to be claims against the Debtors or claims against Aspen Hotel Management, Inc. Although no corporate barrier is interposed as a defense to these claims, 11 U.S.C. S 507(a)(5) provides for priority treatment of these claims only to the extent that they are claims of individuals for personal, family, or household use, and do not exceed $900 per individual. Of the $67,000 in unearned room deposits, approximately $20,000 appear to qualify for treatment as priority claims. These priority claims will be paid in full. c. TAxaz. Schiffer estimates the Debtors' pre - petition tax liability as follows: State of Colorado $121,000 (includes Pitkin County and Aspen sales taxes) Internal Revenue Services 59,000 These amounts have been confirmed with the applicable taxing authorities. Property taxes in an estimated amount of $620,000 are omitted from the. above table due to their inclusion as a cost to be paid at the closing of the sale to Commerce. See Section IV.D. upra. 4. General Unsecured Claims. a. Aspen Hotel_ Management, Inc.: T h e D e b t o r s' schedules listed $331,618.99 in unsecured claims against Aspen Hotel Management, Inc. ( "AHM "), which were disputed as personal liabilities of the. Debtors. AHM was incorporated to be the management company for the lodges and inns owned by the Debtors. The corporation's stock was wholly owned by the Debtors, who also were directors and -41- officers of the corporation. The AHM creditors primarily are trade vendors of the various lodges and inns o*.aned by the-'Debtors. Other AHM obligations include room deposit claims and tax claims discussed in Section III.E.4.b. and c., supra. For several reasons, the Plan permits creditors of AHM to "pierce the corporate veil" and have their claims allowed against the estate of the individual Debtors. First, AHM was inadequately capitalized. Second, transactions with trade vendors were not clearly represented as transactions with AHM rather than the Debtors. Third, AHM apparently held no board meetings, passed no resolutions, maintained no minutes, and" ,generally did not transact its business in a manner that would suggest a corporate existence independent of the Debtors. Fourth, adherence to the fiction of the separate existence of the corporation:: would promote injustice. The above factors particularly are evident in the cir- cumstances that resulted in non - payment of the AHM creditors listed on the Debtors' schedules. AHM and the Debtors allegedly entered into an oral lease pursuant to which the Debtors leased their inns and lodges to AHM in exchange for fifty percent of AHM's gross revenues. The other half of AHM's revenues was intended to be used to satisfy trade debt, salaries, and other operating expenses. During the year preceding the filing of the Debtors' bankruptcy, tYie Debtors increasingly were unable to timely pay their personal liabilities. The Debtors then began to draw more than fifty percent- of AHM's gross revenues in order to service - personal liabilities, carrying the excess draw as an account receivable of AHM. As a result, AHM was drained of its cash funds and became unable to sat- isfy its trade vendors and employee withholding obligations. it therefore appears that AHM was operated in the best interests of the individual shareholders but contrary to the interests of AHM. Moreover, since the assets of AHM were used to maintain the Debtors' ownership of their real property, it would appear inequitable to deny AHM creditors, whose claims were as a result not paid, the right to share the proceeds of liquidation of that real property. b. - Estimate of unsecured c)-aims; treatment of disputed, nnntinaPnt. anri olnimc Including claims held by creditors' of Aspen Hotel Management, Inc., and excluding the claims held by Commerce which are included in Commerce's claim release, unsecured claims by the Debtors total approximately $1,300,000. A more accurate estimate of actual unse- cured claims requires various adjustments to be made, as described below. The claim of �ternal Medicine Specialists Medic�l Group, Inc. was erroneously scheduled as a °secured claim, and should -42- v •. be reclassified as a unsecured claim. This claimant has in fact filed its proof of claim as an unsecured claim in the amount ,of $246,660. A claim of Nasser Sadeghi was erroneously scheduled as a :secured claim in the amount of $450,000. The claim, which is held by H &C Corporation, should be reclassified as an unsecured claim. The amount of the claim is better estimated to total $575,000. Several claims properly were scheduled as secured claims, but should now be considered unsecured. Burr and Marjorie Randles were scheduled as the holders of a claim in the amount of $250,000, secured by a Deed of Trust on the Nugget Lodge. Since the bankruptcy filing, relief from stay was given to a senior lienholder and title to the Nugget Lodge passed to that lienholder, rendering the Randles' claim unsecured. Rocky Mountain'Equity and Mortgage Company holds a second Deed of Trust on Highlands House, behind a senior lien. which appears to encompass most of the value of the property. Relief from stay has been given to the senior lienholder, and Rocky Mount=ain Equity has stated its intention, to assert an unse- cured claim against the estate. The amount of the claim is estimated to be $105,000. Approximately $48,000 of claims for room deposits were scheduled as priority claims but appear to qualify only as general unsecured claims. Garfield & Hecht was scheduled as the holder of `a claim in the amount of $100,000, in addition to a secured claim scheduled in th-e amount of $401,000. The unsecured claim is not in addition to the secured claim, and should.be deleted. With t:h- ese-adju's1ments, sc a claims appear to total approximately"$2,424,000 in unsecured claim As of the present date, proofs of claims have been filed for unsecured claims in the total amount of $11,258,278. Of this amount, approximately $6,200,000 is claimed by John Cant, Charles Burt Jr., and The Anchorage, Inc., who assert a claim for $1,200,000 in actual damages and $5,000,000 in exemplary damages as a result of alleged breaches in performance of an installment land con- tract involving the Woodstone Inn. This claim is disputed in its entirety, as are numerous smaller claims. Schiffer has reviewed claims and estimates that approximately $3,000,000 in general unse- cured claims ultimately will be allowed by the-Court. By an Order of the Court dated February 10, 1984, all disputed, contingent, unliquidated _,_-or---unscheduled claims were required to be filed on or before<March 5, 1984: Any unscheduled, disputed, contingent or unliquidated c1- aim - nailed by that deadline -43- is excluded from distribution under the Plan. Paragraph 6.4 of the Plan requires parties in interest to initiate proceedings to dispute,; any claims, whether secured or unsecured, on or before the Plan's effective date. Any claims not disputed within that deadline shall: be deemed allowed. 5. ,�urcimar of Distribution to reds ors. Based on the information set forth in Section IV, distribution to creditors under: the Plan is estimated as follows: Sale price 91150,000 Less closing costs (including property taxes and interest on post - petition loan) -977j,496 Plus cash on hand, utility deposits, liquidation value of retained property and carried interests +1,190,800 Equals Ifunds to be distributed 59063,304 Less satisfaction of remaining secured claims - $6,825,00'0 Less priority claims 807,700 Attorneys 396,000 Accountants 150,000 Other professional 50,000 persons Wages 1,700 Room Deposits 20,000 Taxes (less 180,000 _ property taxes included in closing costs above) Equals funds remaining for general unsecured claims: Estimate of unsecured claims: Estimate of pro -rata distribution to unsecured claims: -44- 1,740,604 3,000,000 58% ��.. assumptid DdsrprjeLj:eUttprtb3bwidumtW n3fSt:%MDm r9ustestimQ-FWW t&d holder of a general unsecured claim, the most important assumption is. the amount of general unsecured claims ultimately allowed against the Estate. For example, if unsecured claims were allowed in the amount, of $5,000,000, the distribution to unsecured creditors would drop to. 35%- While the Proponents have attempted to provide a realistic pro- jection of the distribution anticipated under the Plan, no assurance can be given that the actual distribution will match the above projection. The Plan incorporates Paragraph 2(f) of the Sale Agreement, which provides for certain cash and options to be given to the Debtors in consideration of the sale of the Debtors' properties to Commerce. Thee Debtors shall receive the_sum- of- -Sfi0t-,-0 cash at.. the time of the closing of the sale.j In addition, the Debtors shall receive an option to repurchase the Mine Dumps, 'B-a -r-bee K; and Barbee B properties for a period commencing six months after the closing and ending on the first anniversary of the closing. The option price is $7,000,000 if exercised on the anniversary date, and if the Debtors exercise the option prior to the anniversary date, the. option price is reduced by $2,876.71 for each day prior to the annJ.•- versary, down to a minimum price of approximately $6,476,000 on the six month date.. James J. Mollica, M.A.I. , has provided opinions of value for the ,three option parcels, indicating a total value of $5,100,000. The Debtors shall also receive any property not sold to Commerce, to the extent that such property is not subsequently admin- istered by the Estate. This property includes any assets which the Debtors are entitled to exempt and for which an exemption is actually claimed. This property also includes any property which the Estate may abandon pursuant to 11 U.S.C. 5 554(a) , (b) , or (c) . Any aban- donment shall occur only after notice -and hearing -to the extent required by applicable bankruptcy statutes and rules. The Debtors filed a joint Petition for Relief under Chapter 11, and their case has been administered as a joint case. However, no Order has been entered pursuant to 11 US.C. s 302(b) for- mally consolidating. the Debtors' estates. Paragraph 7.1 of 'the Plan consolidates the estates, which will have the effect of combining the Debtors' assets and liabilities in a single pool. Consolidation is sought in order to simplify estate administration, by eliminating any need for separate distributions to claim holders. With few •145- 0 i exceptions, the Debtors' real property is jointly titled and the Debtors' liabilities are joint liabilities. Consolidation therefore would result in a distribution to creditors similar to the distribute tion which creditors would receive from the separate estates of the Debtors. The Bankruptcy Code provides-ir --in gneral, that any class of creditors which � i -S- not _paid in full at the time o= plan- can£i`rnation is _impaired." )In the absence of consent.: by an impaired cla83n6 due may be distributed to any junior class of! claim holders (creditors) or interest holders (in this case, the Debtors). This 'uirement is known as the "absolute priority rule." In some instances, the Bankruptgy Court may confirm a plan despite the non - acceptance of an impaired class. For example, the Court shall override the non- accptance of an impaired class of secured claims so long as the claimholders in that class receive cash payments of a value, as of the effective date of the plan, equal to the value of the claimholders' collateral. This .would apply to most secured creditors under the Plan described in this Disclosure Statement. In fact, the Proponents believe:.that the Plan may be con- firmed over the dissent of any secured cr priority creditor. The Plan described in this Disclosure Statement distributes $700,000 in cash plus certain purchase options to the Debtors, despite-the fact that the class of general unsecured creditors is nog expected to be paid in full. Since the Debtors are junior to the class of unsecured claims, the Plan cannot be confirmed by the Bankruptcy Court unless the unsecured creditors, as a class, accept the Plan. The class will accept the Plan if the Plan is accepted by members of the class who hold at least two - thirds in amount and more than one -half in number of the allowed claims in the class which have voted. If the class of unsecured claims does not accept the Plan, there is no provision of the Bankruptcy Code which would permit the Bankruptcy Court to override that non-acceptance, and confirmation of the Plan would be denied. If the unsecured creditors.exercise their power to block the confirmation of the Plan, it does not mean that the property dis- tributed to the Debtors will instead be distributed to the unsecured creditors. It simply means that the Plan will not be confirmed. It is difficult to predict whether this would eventually result in a larger or smaller distribution to the unsecured creditors. -46- ... *04 UWANN .410130* MORMON 4K lowu V The Bankruptcy Code provides-ir --in gneral, that any class of creditors which � i -S- not _paid in full at the time o= plan- can£i`rnation is _impaired." )In the absence of consent.: by an impaired cla83n6 due may be distributed to any junior class of! claim holders (creditors) or interest holders (in this case, the Debtors). This 'uirement is known as the "absolute priority rule." In some instances, the Bankruptgy Court may confirm a plan despite the non - acceptance of an impaired class. For example, the Court shall override the non- accptance of an impaired class of secured claims so long as the claimholders in that class receive cash payments of a value, as of the effective date of the plan, equal to the value of the claimholders' collateral. This .would apply to most secured creditors under the Plan described in this Disclosure Statement. In fact, the Proponents believe:.that the Plan may be con- firmed over the dissent of any secured cr priority creditor. The Plan described in this Disclosure Statement distributes $700,000 in cash plus certain purchase options to the Debtors, despite-the fact that the class of general unsecured creditors is nog expected to be paid in full. Since the Debtors are junior to the class of unsecured claims, the Plan cannot be confirmed by the Bankruptcy Court unless the unsecured creditors, as a class, accept the Plan. The class will accept the Plan if the Plan is accepted by members of the class who hold at least two - thirds in amount and more than one -half in number of the allowed claims in the class which have voted. If the class of unsecured claims does not accept the Plan, there is no provision of the Bankruptcy Code which would permit the Bankruptcy Court to override that non-acceptance, and confirmation of the Plan would be denied. If the unsecured creditors.exercise their power to block the confirmation of the Plan, it does not mean that the property dis- tributed to the Debtors will instead be distributed to the unsecured creditors. It simply means that the Plan will not be confirmed. It is difficult to predict whether this would eventually result in a larger or smaller distribution to the unsecured creditors. -46- B. VOTING BY 'CLAIM HOLDERS Holders of claims may vote on the Plan by filling out and - mailing the accompanying ballot. The Bankruptcy Court has set a deadline for voting, which is stated on the accompanying Order Approving Disclosure Statement and Fixing: Time for Filing Acceptance or Rejections of Plan, Combined With Notice :_Thereof. That Order also sets the date for the hearing on confirmation of the Plan. For more detailed information regarding your voting right or other rights in the confirmation process, consult your own attorney. Respectfully submitted this_ ,;- day of October, 1984. Sp cer F. Scfi ifferJ,��h ief Executive Officer f the Estate of Hans B. Cantrup and June M. Cantrup Hans B. Cantrup, Debtor une M. Cantrup, Debt r -47- rA `did •. UNSECURED CREDITORS' COMMITTEE Robert.B. West, Chairman -48- N COMMERCE SAVINGS ASSOCIATION OF ANGLETON, TEXAS r Ella . Neyland, Se for Vice President -49- FD ASPEN WATER DEPARTMENT MEMORANDUM TO: ALAN RICHMAN, PLANNING FROM: JIM MARKALUNAS SUBJECT: .ASPEN MOUNTIAN LODGE PRELIMINARY GMP /SUBDIVISION DATE: OCTOBER 22, 1984 @IEadIE OCT231 I, V This is to inform you that I have reviewed the Aspen Mountain Lodge Preliminary Submission. With concern to statements made in the Introduction and Summary, Section D, Public Facilities Improvements and Relocations, Water, page 22, the Water Department will provide service to the project, provided the Water improve- ments outlined in the PUD agreement, (page 5) are installed; i.e. 12" Water Main in Galena St.' It is also our understanding that there will be three new Fire Hydrants installed on South Galena:_ We would like to take this opportunity to point out there are some minor discrepancies on the Utility Drawings. The Utility Drawing shows four new hydrants, two on Mill and two on :Galena.. Also, the Master Plan shows struc- tures built over the existing 12" main supplying the Aspen Mountain Tank. I am assuming that the development will take this into account and provide for re -rout- ing, at the developers expense, the existing 12" main, so as notto interfere with maintenance access to this main. Please also reference ouR letter of 9/21/84 (attached). JM:ab Attachments: (1) September 21, 1984 0 0 CITY OF -ASPEN 130 south galena street aspen, Colorado 81611 303-925 -2020 Mr. A.J. Zabbia, Jr. Rea, Cassens and Associates, Inc 201 N. Mill St. Suite 207 Aspen, CO 81611 Dear A.J., This letter is to note that the developer of the proposed Aspen Mountain Lodge has requested us to temporarily remove our facilities in a portion of Mill Street and to review our present and future easement needs in the proposed vacation of Dean Street between Monarch and Galena, Lawn Street and the upper portion of Mill Street within the Top of Mill Project. We presently have and will continue to require an easement within the proposed vacation at the top of Mill Street for the City of Aspen 12" water line and at such time as contractual arrangements are completed, we will agree to relinquish easement rights within Dean Avenue between Galena and Monarch as well as,Lawn Street. In accordance with our water main extension policy, any water line relocation is subject to the rules and regulations of the City of Aspen Water Department and is dependent upon completion of contractual arrangements and easement-acquisition. Said construction shall be the financial responsibility of the developer.or consumer If you have any questions., or .require further information, please contact me. Si cerely, l Mr. m rfarkalunas; Director .City of Aspen Water Department JM:ab cc: Planning Dept. Engineering MEMORANDUM TO: ;:City Attorney City Engineer Housing Director Aspen Water Department Env i ronmental_Heal_th __Depa_r tment 3 Aspen, Consolidation Sanitation District's Fire "Marshall Fire Chief Building Department Zoning Enforcement Officer FROM: Alan Richman, Planning Office RE: Aspen Mountain Lodge Preliminary GMP /Subdivision DATE: October 11, 1984 Enclosed for your review is the Aspen Mountain Lodge Preliminary GMP /Subdivision submission for the lodge portion of the project. Please review this material and return your referral comments to Alan Richman of the Planning Office, no later than November 5, 1984, in order for this office to have adequate time to prepare for a public hearing before the Pitkin County P &Z on November 20th. Thank you. /,e oa F c.' As s rA-re r> e3 e: F�,� �. c � �-. 5'r/-4- t3 L SFe_�er> 1­5 y i1 -4 P A,S/*6 A - So y ,* ream 5SAA- iri9 67at c-•. L � 04 l� iy.4s_gCe✓L 0 i • . ... eM Regular Meeting Planning and Zoning Comission October 2, 198!4 Chairman Perry Harvey called the meeting to order at 5:03 p.m. with commissioners Jasmine Tygre, Pat Fallin, Welton Anderson, Lee Pardee, David White, Roger Hunt, and Mary Peyton present. COMMISSIONERS' COMMENTS. Harvey commented on the letter sent to the commissioners whose terms have expired. Harvey,encouraged Hunt, Tygre, and Pardee to definitely reapply. The city is'now fo-:lowing proper procedures; when a term expires; the opened position J.s publicly noticed and new applications are encouraged. Hunt requested a reaffirmation of his position now. Is he allowed to sit as a commissioner until he is reappointed or relieved? Harvey replied that Hunt can sift on the Commission until relieved. (Jasmine Tygre arrives in the chambers.) Harvey reminded the commissioners there is a joint meeting with City' Council on October 15th at 5:00 p.m. in the council cham- bers: This will be a work session on SPA. Alan Richman, planning office, remarked that Council has. many questions about the resolution. He preferred the commissioners as opposed to the staff answer the councilmembers' questions about the resolution. He wanted the councilmembers to see that the commissioners support the resolution. Harvey asked Tygre if she has reapplied. Tygre replied yes. White reminded the commissioners that tomorrow at 4:20 p.m. in the council chambers Council will resume its discussion over splitting the planning department. MINUTES September 18, 1984: Roger Hunt moved to approve the minutes of September 18, 1984; seconded by Pat Fallin. All in favor; motion carried. PRE - APPLICATION MEETING AGATE LODGE Harvey said this is a pre- application meeting on -the Agate Lodge. The problem is that the PUD requires architectural review. The applicant requests an approach to mandatory PUD that does not require the review of the architectural design. Colette Penne, planning office, reminded the Commission it reviewed the application on the Agate which was submitted by 1 RECORD OF PROCEEDINGS Regular Meeting Planning and Zoning Commission October 2, 1984 Stevenson and his group a.few months ago. They had the property under option from Butch Clark. Stevenson's group presented a plan which had some problems. The.Commission defined those problems and suggested revisions in certain areas of the plan. Stevenson's group did that, but the Commission still had problems with certain fundamental areas in the site planning. The Commission again directed the group to address the issues. The Stevenson's group decided it did not want- to work with the city; the group decided not to purchase the property. The property is still owned by Butch Clark. Clark wants the Commission to discuss why the mandatory POD was imposed on the property. Is there an approach whi.ch would not require the design of the houses and would not require the review of the architectural design. Could the Commission just review a site plan? Would the Commission support the renioval of the POD so that the parcel is zoned-R-6? The R -6 zone would be in conjunction with the west end neighborhood. Clark does not want to design and build the entire project. Clark wants to go through full subdivision, divide the parcel into into single family and duplex lots, and sell. those subdivided lots to individuals who would design their own houses. Penne reviewed the requirements of the POD and the feelings of the planning office. Remember this is only a pre- applicatioii conference and discussion. One question the Commission needs to answer is whether or not to amend the code in the POD section: Would the Commission support removing a POD through a rezoning? Architectural design and landscaping plans are required under the preliminary POD plan. The code reads that the plans should be in sufficient detail to enable the planning commission to re- evaluate the architectural and landscaping design features.of the develop- ment. The plans should show the location of floor area of both existing and proposed buildings, the maximum heights, the types of dwelling units, etc. The Commission is provided a commencement and completion construction table. The Commission is provided preliminary elevation and perspective drawings of all structures and improvements. The proposal by Tom Wells, representative for Mr. Clark, is for full subdivision of the property. Those lots would be sold. as raw land for the development of single family units, or duplex units without architectural design. There possibly would be a site plan. This proposal is difficult. The division is along original townsite lots. Wells has indicated his client would be flexible about lot arrangements offered under a POD. But the applicant does not want to design houses. The POD can be utilized :4 Lam_ RECORD OF PROCEEDINGS n-411-70=2E. 11..1 -� •�. �. . , .�. • ..- in terms of the land planning. But, the applicant does not want to go through all the requirements of.PUD. Planning office believed that the PUD overlay was placed on that particular property because of its visual sensitivity. The property has a real impact on the entrance to Aspen. Therefore, it is important to review more than a site plan for the property. There are no slope or viewplane problems. Wells did mention in his letter of application,. which is included in the commissioners' packet, that originally the property was used for a lodge. But, during the L -3 rezoning process the property was used for long term residential accommodations. The argument by S.lells is that things have changed and therefore. the PUD is not appropriate anymore. Planning office disagrees. Nothing has changed. The use on the property is not as important- as its exterior, visual ,impact. Penne recommended a solution to accomplish what the applicant wants. Perhaps the parcel should be zoned R -6 without a PUD overlay. The disadvantage with that' solution is it does not provide the flexibility to be innovative with the property. R -6 has a certain amount of compatibility with the neighborhood.. Many R -6 neighborhoods exist along the original townsite lots. The houses in those neighborhoods are - heterogeneous; there are Victorians next to contemporary structures. Harvey understood the Commission's concerns during the original application process was the visibility of the property (it is the first piece of property that one sees as one comes into town); the trees; and the elimination of the alleys. If a PUD land plan were done then the city might end up with a proper design. Deal with regular townsite lots then. I Hunt remarked given the greater amount of setback on Seventh Street there would be more natural landscaping needed to buffer the noise from the dwelling, units. That corner is noisy. An audio type barrier is needed. The PUD discussion anticipated the development of the property into a semi- commercial use. He did not have a problem with a straight subdivision. But there will be problems subdividing along the straight existing lot lines, especially for the lots along Seventh Street. Tom Wells, representative for the applicant, investigated what was meant by "more creativity allowed within a PUD." He misunder- stood the PUD process in Aspen. He assumed that PUD could be used either for full blown developments or only for land subdivi- sions. Most communities provide the options. Usually one could take advantage of the mixing and matching of density and /or land 3 -.t RECORD OF PROCEEDINGS Regular Meeting Planning-and Zoning Cgmission October 2. 1984 uses allowed in the process. In Aspen one has to go through steps A to Z, there are no interim ste.ps. The system is built into the.PUD ordinance. An applicant.has no choice to not fully develop a project. The PUD ordinance will not accept Clark's intentions of designing a buffer and using some lot lines. The PUD requires review of a development through the entire process. Wells did not suggest eliminating the PUD. The PUD is the one chance for the city to look at a very sensitive lot. He agreed with certain points in the planning office memo dated October 2, 1984. The block is one of the most visually sensitive in Aspen and should be developed in a manner which enhances the image of the community. The PUD overlay will allow for innovation in the site plan, retention of some major trees, a provision for a buffer along Seventh Street, and cluste-ring of lots or structures. Eie agreed with that statement 100 %. The lot is very sft.:cial. The Agate Lodge is certainly substandard and has been that way for a long time. A PUD was imposed on the assumption that the property would be developed as a lodge. The city wanted to make sure a good project was developed there.. fleanwhile, the owner voluntarily engaged in long term rentals. The property was under long term rental when the L -3 zone which preserved lodge zoning was established. The property did not qualify for the L -3 status. The PUD still exists. Clark can develop the property himself. He. can hire an architect to design a total development plan. He can find another developer who would accept that design. Or he can sell the property to another developer who would provide an alternative design. The extreme solution is to break the property along the lot lines into normal patterns of the R -6 zone and not respect the fact that the lot is special. House. sites could be established and sold as residential lots, either as single family units or duplex units, with no change in density, no change in unit count. But the code does not address this. These individual lots could be designated with a PUD overlay, similar to Castle Creek Drive. He encouraged the varied natural textures of the west end community over a homogeneous development like the villas.. The west end is picturesque: new and remodeled Victorians side by side with contemporary architecture. He preferred to go through the PUD process as a land plan process. The R -6 underlying zoning establishes the density, therefore, there is no, change in the density. .. " Creativity can be established under a PUD. Perhaps berms and walls and landscaping can be established on Seventh Street to protect the visually sensitive area before the development is 4. 2, RECORD OF PROCEEDINGS Reqular Meetin4 _Plan na and Zoning Commission October 2. 198, -, built. He cannot detail the exact conditions. But, it is not realistic to establish building envelopes or driveways or to determine which trees to save under the individually owned concept. He cannot dictate to everyone how to design their houses. He envisioned many small duplexes, similar to the project for Doremus on Smuggler between Seventh and Eighth. He preferred a design of quiet small buildings. An entire block of similarly designed structures would not be interesting. He favored the varied textures of the west end along that visually vulnerable block. Harvey quoted from the planning office mEmo dated October 2, 1984, page one, paragraph one: "sufficient detail to enable the planning Commission to evaluate the architectural, landscaping, and design features of the planned unit development... the plan should show the location and floor area of all existing and proposed buildings, structures... including maximum heights, types of dwelling units..." Harvey asked why certain requirements cannot be waived within the PUD process. Richman replied the code does not allow the Commission to waive those requirements. Harvey argued the code allows for variances within a PUD. Perhaps an architectural control committee can be established for the project. Pardee reasoned there is a PUD overlay because the site is visually critical. Many times mandatory PUD is placed on a property for slope reduction without requiring architectural plans. The critical reason mandatory PUD is imposed on some properties is because of the slope. The area reduced by the slope affects the density: The critical reason the. PUD is imposed on this lot is because of its visual vulnera- bility. Therefore, he does see a problem with a site or land PUD. Penne explained there is a problem. The only thing that is exempt under a mandatory PUD is a single family house. Even the owners of duplexes, like Roush, had to come in with a request for exemption from mandatory PUD. Pardee suggested an exemption from PUD if the applicant were to agree to restrictions defined on the property by the Commission. Penne argued a PUD may be desirable for the buffer zone. Harvey interpreted Pardee's recommendation: blackmail an applicant from an exemption from PUD with an approved land plan. Pardee said the Commission is not so concerned with the area to the east. He would insist there be a - buffer on Seventh Street. IIe would insist the design plans for the first two homes on Seventh Street be reviewed. Exempt the other lots from PUD. Under PUD he 'would be willing to grant the allowed 5 RECORD OF PROCEEDINGS Regular Meeting Planning and Zoning Commission October 2. 1984 maximum FAR for a 6,000 square foot lot even though each lot may be less than 6,000 square feet. The lots, may lose land, approxi- mately 500 square feet, to the buffer zone. Wells commented that Clark's original preliminary layout included two duplex lots on Seventh Street, which provided 90 feet to play with. That layout provided flexibility to create a meandering buffer. Pardee requested the -trees be saved and the alley be maintained. Harvey interjected the issue is not what the Commission wants to see in the PUD, but the issue i.E how can Clark's request be done legally within a PUD. If there is not a legal solution; then should the PUD be removed. Richman explained this request can be accomplished through ail exemption from mandatory PUD. If the Commission were to find the development meets the intents and purposes of PUD then the applicant would not have to go through all the rigorous requirements of PUD. However, the applicant would still have to go through full subdivision. This project would have to go before the Commission and Council twice. He did not know 'if Council would agree to this concept. The Commission is entrusted with exemptions from mandatory PUD. If the project were consistent with PUD intent then the project might not have to meet the PUD requirements. From the perspective of design and results Wells said he did not have a problem with Pardee's recommendation. However, that solution still forces Clark into either designing or developing the two duplexes on Seventh Street. Perhaps there could be an agreement that the city maintains total control. with the understanding that their is PUD, that their is a buffer, the Commission can review those two duplexes as they come along- as a neighborhood PUD overlay. Wells specified that Clark's original plan included two duplex lots 90 feet from Seventh Street, and three single family• units on each side of Sixth or a total of six single family units. White remembered the Commission's concern during the review of the original application was the buffer, the trees, and the alley. There was a concern about the homogeneity of the houses. He favored the varied textures. If there were someway the city could have its concerns on Seventh Street mitigated and the applicant could accomplish his goals then he would be willing to work out a system whereby free enterprise was not limited in the less critical portion of the entire site. Perhaps an easement is the answer. Wells assured the Commission that the R -6 zone spells out height, 6 t • RECORD OF PROCEEDINGS Reaular Meetin4 Planning and ZonirLcL Ccmm sion October 2. 198 setbacks, floor area, parking, everything. . It is only the aesthetics of the design concept that the Commission is required to review. White encouraged the solution be as simple as possible. He would be willing to remove the restrictions of a PUD on much of the site if the city were to receive what it wants on Seventh Street. Wells remarked the city does not have an architectural review committee. Hunt recommended that the Commission establish the preconditions which the Commission has stated before". If lot M were to stay within those prior stated conditions for the entire PUD then the Commission would define the lot for FAR purposes as 6,000 square feet even though the lot -was only 5,500 square feet. If all th.e prior conditions were met by the individual lots then what would be the problem. If the lots were °to maintain the precondi- tions then the lots would be exempt from the PUD. Require that the two lots on Seventh Street have a full PUD. Richman suggested the Commission come to a consensus as to whether the applicant's approach is acceptable. Do not design the legal solution, let the planning office' discuss a legal solution to the problem with the city attorney. If the Commission were not worried about consistent architecture across the entire PUD then that would be all. the planning. office needs to know to work with the applicant. Tygre noted the PUD overlay will have to remain. If the buffer zone were created the PUD would have to remain to address the changes in the sizes and arrangements.of the houses. Harvey said the site plan indicates conforming lots; the con- figuration is six thousand square feet, six thousand square feet, six thousand square feet, and nine thousand square feet. The buffer area would be some kind of easement. The difficulty is creating the mechanism which would provide for permanent maintenance of the buffer zone, whether it be a stonewall with ivy or whatever. If the owner of this particular lot were to grant an easement to the city, then how would the buffer zone be maintained by future property owners. There is no incentive to maintain the buffer. The buffer zone generates nonconforming lots on Seventh Street. .The critical question is should the city require a PUD on those two duplex lots fronting Seventh. Should the city require the owner or developer to create the buffer the way the city wants? If so, should the buffer become a common element in an-,homeowners organization even though those two duplex lot owners would maintain the buffer? On the other hand, if an easement were given to the city, then the city could create and maintain the buffer area as it wants. 7 • aw t RECORD OF PROCEEDINGS • -• -- 1• .. 111 MOMIM •1. 1• •L -l1.. WRI 'Lei I • ..- Pardee asked if a duplex or a single family structure is going on the duplex lot. If a duplex were built there, then it would occupy a greater portion of the extra lot._ The city would not gain that much. The concern is the size, description, and looks Of the two duplexes. or single family homes. The other concern is the appearance of the buffer. He would not release anything until the city has reviewed those two lots. Wells repeated he still does not want to design the buildings. The city is forcing Clark to develop something he does not want to develop. Design flexibility is important. Flexibility is much greater with a duplex on 90 feet rather °than with a single family house on 60 feet. Pardee opposed the development of the six family units without addressing the two most critical lots. He did not want to see the most critical lots developed or reviewed. last. Pardee would not release any PUD until the Commission has reviewed those two parcels and reviewed the mitigations. Wells commented that the original layout by Clark included a buffer. But the original plan did not consider who would maintain the buffer. It would be advantageous if the city maintained the buffer. The city could coordinate the buffer with the island. The city could define and maintain the kinds. of trees and shrubs in area. Then Commission can review the design when the duplexes come up for development. Pardee asked if the same setbacks would be maintained for a duplex. How much would be given to the city? Harvey answered that would be determined through the process of negotiation. Harvey asked if the Commission favored an approach to enable the Commission to do a PUD land plan for the critical Seventh Street frontage and if the Commission favored retaining the PUD overlay on those two lots. Richman interjected that PUD involves a minimum of 27,000 square feet. This solution is not workable. Harvey asked the Commission's position about exploring a thirty foot easement. Harvey concluded the solution will probably be some agreed upon land plan and easement granted to the city. The city would then maintain that sensitive part of the property. Penne remarked the Commission may not want to extract the maximum density for the property. Even if the Commission were to want a buffer without a PUD there might not be room for maximum allowed density. The suggestion to allow the maximum FAR that the block n will absorb is not necessarily a good solution. If houses.with M RECORD OF PROCEEDINGS maximum FAR were allowed and if the houses were grouped more closely together, then there might result a tighter grouping of larger houses. The visual impact would be massive. Wells maintained that the lot sizes did not have to be limited. Keep the full PUD process for the two sensitive lots on Seventh. Richman reiterated that cannot be done, PUD requires 27,000 square feet. Hunt said keep the PUD on the entire block but exempt the lots which comply with the preconditions from the PUD requirements. Richman supported the exemption approach. Keep the PUD on the entire property. Go through PUD review procedures. The Commission could determine that full architecture was not appropriate and could exempt the individual owners from the full architectural procedures if the applicant were to demonstrate the alleviation. of the Commission's concerns with sufficient detailed informatior. If the Commission were to agree with this concept then planning office with the city attorney could try to design a program to make that happen. Pardee asked the Commission if it wants to review the architectural design of the two houses on Seventh Street. Seven commissioners favored this; one opposed. Pardee-commented that it was a mistake to impose the PUD on the entire block. But he would not support removing the PUD until the two most critical parcels are reviewed. Fallin did not support carte blanche exemption nor did she support the request by the applicant. PUBLIC HEARING ASPEN MOUNTAIN LODGE CONCEPTUAL GMP SUBMISSION AND SCORING SESSION Harvey opened the public hearing. -Penne provided the cbmmi'ssioners a project profile and the score sheets. There is only one application. It is for 4,500 square feet of commercial space. The space is part of the Aspen mountain Lodge project. The applicant came through the original lodge competition with a proposal for 8,500 square feet of commercial space. The commercial space has been reduced to 4,500. The commercial space is ony the ground floor of the hotel. The space is for retail space for permitted uses in the cl zone; the same uses permitted in cc with the provision that the space is- at street level with lodging above. The quota available, in the cl and other. zones is 3,000 square feet. The request, iswfor a year and one -half quota. Harvey acknowledged that 3,000 square feet is available in the 1984 quota. -But, how many square feet did Council eliminate in 1983? 9 d Yi. r P L401 I • 9 MU •• v Regular Meeting Planning and Zoning Commission October 2, 191 There was an 8,000 square foot accumulation over the years of unallocated commercial square footage. Penne commented it does not make sense to phase 4,500 square feet over the years. Harvey reasoned the Commission is officially taking from future 'yea.r,s allocation, but remember there was 8,000 square feet from the past never used Penne noted that construction activity like the Skier Chalet and the Pro Shop at the golf course are subtracted from this category. Skier Chalet is exempt from the allocation because it is an historically designated structure. Penne. remarked all employee housing is being considered for the lodge project as a whole. The employee housing number is still being revised. The number of employees has been reduced drama - tically since the original submission. The provision of housing for this particular application, 4,500 square feet of commercial space, is for..six employees in addition to the lodge's require- ments. These six employees will be put in housing at the Airport Business Center. Thesc units will be converted from free ip.,arket to employee housing. As tea; numbers are refined in preliminary PUD for the entire hotel project, the six employees for this application will remain fixed. Those six have to be provided. Harvey said 4,500 square feet translates to 15.8 employees (4,5.00 times 3.5 employee per thousand square feet generated in the "cl zone totals 15.8 total employees). Six employees are only 38% of the total required. Track these six employees. Keep these six employees in perspective with the 15.8 figure. The employee ..figure needs to be related to employees per 1,000 square feet and to be related to the project. - Penne encouraged the Commission to consider the amenities package for this project as part and parcel of the entire hotel project. Peyton asked if there is. a formula for determining the number of employees based on the zone category. Penne explained use is the critical factor; 3.5 employees per 1,000 square feet of commercial use. Peyton asked if the planning office has calculated the total number of employees generated for the entire PUD based on the square footage per use. Penne answered yes. But, she is not familiar with the numbers. Vann has been handling this. Joe Wells, consultant for the applicant, explained the figures have been developed over the years by the housing authority. A formula exists. Peyton asked if all the different uses for the hotel are added together for a total number of employees for the PUD. Someone said yes. Hunt cited some problem.areas in the application. How will this commercial space be serviced by service and delivery vehicles? 10 .._..�.;..._. ..,.,_� ......... ..... ... -:.... .;. r_,_.- .- ...;.- ...+;�f+v�:*z^...�.,... rem+: ^� ^....�� RECORD OF PROCEEDYNGS �,NFFIM MV Commercial uses require. semi trailers, trucks, and service vehicles..J. Wells responded the service bay as proposed is along Deane. The proposal complies with the city's standards. Hunt said the city standards may not be good enough. The commercial building will probably accommodate a ski shop and other retail spaces which will require some degree of service vehicles. Deane Street appears to be a divided street or. two single lanes with a divider in the middle of the street. Part: a semi trailer or truck which service the building on'Deane and the circulation is affected. Accommodate the service vehicles on Galena or Durant Street, a main transit route, the circulation again is affected. There is a major design flaw for the service vehicles.. J. Wells clarified there is a service bay for semi trailers and trucks at the east side of the east wing of the hotel. He considered refiling the hotel application in order to obtain a scoring for the commercial project. Harvey said details' have not been shown for this problem. J. wells again said there is a full blown service bay associated with the east side of the hotel. Hunt asked the location of the service bay on page twenty -three of the documented submitted for the GMP application. Incidentally, page twenty -three and page twenty do not agree. He does not understand what is going on. The proposal is insufficient. John Doremus, consultant for the applicant, mentioned the median on Deane is nonexistent in the current plan. Perhaps include that. as a caveat in a condition of approval.. This is not an alley to be used necessarily by other trucks. The public may access the street although the applicant owns the street. Therefore, the regulations regarding parking can be somewhat different than the . parking regulations on an alley or public street. The easiest way to handle semis and cars on Deane, which has no median, is to create a two way alley which would be twice as wide than a standard alley. Remember the building is a one floor commercial building. The commercial building will not be as active as a two to four story building. Hunt interjected part of the problem is exacerbated by the fact he has not received any floor plan of the commercial building. Service areas are extremely important. There are also major inefficiencies in the service bay for the main hotel project. These issues need to be addressed. J. Wells reminded the commissioners the project is continually in flux. This is a conceptual review. -The proposal complies with the service requirements of the city. There is a ramp proposed to the underground parking in the immediate area to accommodate service vehicles. Review that option later on in'the other review process. Presently, there is a service bay on Deane Street; the street will be vacated for the applicant's ownership on the south end of the commercial building. There is also a 11 Reaular Meeting_ Plann* c and Zoning C missial October 2. 198, complete service bay associated with the east wing of the hotel. The full range of service solutions should be handled through the preliminary review process. Hunt noted there is no curb cut shown on the sidewalk on Deane. He does not see a service area for the commercial building. J. Wells again said the building is constantly being redesigned, the only assurance he can give' to the Commission is that it will have another opportunity to address this issue during preliminary review. Penne worked on 'certain assumptions for the scoring. If the proposal were to get through the entire conceptual PUD with a major design flaw then the system might not be working well. But, there is a preliminary PUD coming up. Any of those specific details can be worked out at that level. It is difficult to separate and divorce a small 4,500 square foot segment from such a large project as the Aspen Mountain PUD. It is difficult to score the 4,500 square foot segment. The Commission has to assume that the plan is at an acceptable level of . design since the overall project has been extensively run through one step of the process. Hunt said even if the overall design is acceptable there are v4�,a details which are quite unacceptable. Harvey said site design addresses landscaping and open space, it also addresses arrangements of improvements for efficiency of circulation, including access for service vehicles. This specific scoring category for this appli,­ cation is deficient to the degree the Commission cannot satisfac- torily give it a score of excellence. Penne said there will be sufficient opportunity to work these details-out at the .preliminary level. Harvey commented that Hunt can by right score the category with a zero because the design is deficient in addressing service vehicles and circulation. J. Wells reiterated the city defines the standards that an applicant complies with. This applicant has complied with the established standard. The document states the applicant complies with the trash and access standards as currently defined with the city. Harvey responded but there is no design presented. Hunt believed the discussion in the submission under the category of .energy is deficient also. The submission discusses lodge conditions but the discussion does not relate to the commercial portion of the lodge. The conditions of unoccupied rooms are not necessarily applicable to commerical spaces. The discussion does not sufficiently identify energy, efficient equipment and design. "HBAC air conditioning" normally means closed cycled refrigeration type air conditioning. That is not an efficient system for commercial space. Harvey thought there was a generic reference 12 RECORD OF PROCEEDING to heating ventilation and air conditioning. Hunt said there is insufficient information to grade this category with a good score." J. Wells said the 4,500 square feet of commercial space is a minor element to the whole. The overall issue of energy for the 500,000 square foot property is much more important than the issue of energy for 4,500 square feet. White said it is difficult to score tYii:s application when the overall project needs to be considered. One concern is with transportation; there is no circulation plan. There is a problem reviewing and evaluating one discreet proposal from an overall project. He criticized the system: the Commission does not receive enough information for the one; discreet project and ye±: proceeds to approve the discreet proposal. Is there a place to comment about the insufficient information? In order to evaluate the discreet proposal there is certain information which is needed now that will not come forward until the overall project is reviewed. Presently, there is no. circulation plan for vehicles and pedestrians for the commercial space. Pardee argued there is a difference between conceptual and preliminary review. It would be unfair to require finite, exact, detailed architectural plans until the applicant receives conceptual 'j approval. Harvey reasoned when an applicant is looking for approval to build only a lot then the GDIP process is the greatest level of detail. But this particular case is associated with .a preliminary PUD application. The preliminary review will be the appropriate forum for the detailed submission. There is a loop of good faith. Tygre shared the concerns expressed by Hunt and White. There is every reason to believe the applicant will show designs for all these concerns at preliminary. The applicant is redesigning all the time. But, there is still a feeling that this is out of control. There are many elements to this project. Normally, under the growth management process the details would be presented now. But, much is being deferred to the preliminary level. The GMP scoring is based on the assumption that these questions will be resolved satisfactorily at preliminary review. But what happens if the problems are not satisfactorily resolved at preliminary. That is the concern. J. Wells remarked the entire process is very inflexible. The applicant is working with amended resAidential GMP applications and with amended lodge GMP applications. The more that is defined the more likely there will be amendments. The building.design is in flux. Tygre said this situation is the perfect justification for the "Cantrup build now and ask permission later plan." 13 w- . 11.E 4 ..• I M9 Rik I J. Wells said the `Commission has to find, comfort in that it has control through the PUD process. Harvey said the Commission can -grant a growth management approval or allocation with the assurance that this proposal will not be built if all the questions are not answered in the preliminary PUD process. Tygre said somewhere in the growth management approval process these concerns should be recorded. Penne said the concerns expressed through the scoring or through this discussion will be conveyed to Vann who is taking the Aspen Mountain Lodge project through preliminary PUD. The concerns will be incorporated in the planning office's submission. Harvey requested the minutes of this meeting be submitted as part of preliminary PUD. J. Wells clarified certain points. First he wants. to try to avoid filing amendments. He clarified the statement on energy - Specifically, in order to get a .quality operator it may be necessary to air condition the rooms. The operator may not accept those three or four days in summer without air condi- tioning. The other aspects delineated under energy will be retained. There will still be a computer system which monitors the systems. J. Wells continued. Under site design Penne has recommended the maximum points. She has stated that the applicant is offering more than 25% open space_ for the entire PUD and the lodge. The overall PUD open space is still 50 %. But, the hotel open space is now 25.3 %. There is a reason for the change The ice rink has been relocated from a space which was not counted in open space because it was more than ten feet below grade to a space which was counted in the open space figures. That space to which the ice rink has been relocated will now not be counted in open space because of the definition of the ice rink as a recreational use in L -3. The open space in the internal, courtyards also has been reduced. Land which is ten feet below grade is not counted in open space. Why does the applicant not receive.maximum points for storm drainage? J.-Wells did not know. The proposal deals with on site problems and handles the problems identified by Wright- McGloughlin many years ago. The applicant has voluntarily agreed to address that problem. He quoted from the previously submitted storm drainage report: - ... . "The construction of a pond or ponds to retain and store the historic unpolluted runoff from the area of Aspen Mountain, south of. the proposed development, will. reduce the chance 14 Rgqulai Me6tirq Planning and'Zolling Commission' October 2. 1984 of flooding of the project* and areas downstream of the project. The construction of this retention pond was recommended in the Wright- McGloughlin report.. And although some effort to provide the storage has been made by private individuals the completed construction has .never been accomplished. The construction in conjunction with this project will fulfill a need required to protect the core business area of Aspen. It should be kept in mind that this storage is for upstream historic storm water from Aspen Mountain and not for storm water generated by or on the project site." Hunt asked if there is a conceptual system under the energy section. Wil:i a hot water, chill water loop run through 1 -he hotel? Will air conditioning work off that? Or will there be a forced air system? J. Wells said the idea of solving the swamp coolers has been abandoned.. Hunt asked if the main system is pre-cooled 'with swamp coolers. J. Wells could not answer the questions. Penne explained the recommended scoring provision for employee housing is based on a formula. That item is not a discretionary item. The same holds true for the conversion of existing units. Planning office does not grant bonus points but the Commission can. The Commission grades the GMP application. Peyton asked if part of the entire PUD were not to receive an allocation then what would happen to the entire PUD project. Harvey replied that portion which did not receive a growth management allocation could not be built. The portions of the PUD which satisfy two concerns, receive PUD approval. and receive a growth management allocation, could be built. Peyton asked if there is a condition attached to the resolution on conceptual approval that states that the separate parts _have to be approved before the entire PUD or any part of the PUD can be built. J.- Wells replied yes. Pey.ton said theoretically if one part were not to meet threshold the entire project could be killed. Gideon Kaufman commented he has .a client that is planning to compete next year in the cc district. He suggested in years where there are no competitors, instead of eliminating the allocation for that year create the ability to preserve some of the allocation so the city does not have to borrow from future year allocations. This ability "also allows someone to build an average size building without having to phase construction over a two year period. Harvey said Council in 1983 eliminated the 15. RECORD OF jPROCEEDINGS Regular Meeting Planning and zoning Commission October 2, 1 backlog of allocations. Kaufman said no one is competing this year in the cc zone. .hf someone were to come. in the next year with a submission for a 12,000 square foot building then the applicant could ask for an allocation from the previous year and not for an allocation from the future year. Preserve the ability to borrow an allocation, from the year which had no competitors. Harvey asked � if. Kaufman 'is requesting in the recommendation concerning commercial G14P a statement. that the, cc quota, which received no application for the 1984 allocation, be maintained and carried.forward. Kaufman stated at least provide the ability to carry forward the 1984 allocation. Harvey said the Commission could recommend to carry the quota forward. Kaufman explained if the allocation: were not used the allocation would be eliminated. With his proposal the city would be in a position in the following year not to borrow from the future year allocation if a submission were to request more than the allocation for that year. Hunt asked if Council can regenerate the allocation it eliminated. 'Harvey pointed out if the Commis: r_ sere not to recommend to carry forward the unused allocation from this year to next year, then the allocation would be eliminated. Specific action is -necessary to carry the allocation forward. Pardee q- uestioned that statement. He believed the allocation is carried forward automa- -tically. s Penn,.-- said she thought if there were to be an elimination of carry.-over then specific action would be necessary; she was not sure. Kaufman said traditionally when the Commission does not recommend the allocation be carried over that the allocation is eliminated. -Penne stated the application passed the scoring. Motion. Roger Hunt moved to forward the results of the growth management plan to the City Council, to recommend approval, and to recommend that the City Council allocate a -future half year allocation to this project so that the project can be. completed in a timely fashion. The rilotion, is seconded by Jasmine Ty.gre. J. Wells requested that the request to carry forward cc allocation be incorporated in.a separate motion. Discussion. "Pardee' recommended change "growth management plan" to "growth management plan scoring." Roger Hunt amended his motion to read: "...' to forward the results of the growth- management plan 16 RECORD 7,� OF PROCEEDINGS scoring to the City Council..." The amendment is seconded by Jasmine Tygre. All in favor; motion carried. Welton Anderson moved to recommend to Clity Council that Council carry forward the cc commercial square footage from the 1984 competition since there were no competitors. lie recommended that the allocation be added in the potential for - future years in the cc zone. He also recommended to carry over other commercial quotas, for example the o and the cl. The reason for this recom- mendation is there will be an inventory. ; of allocation so that the city will not have to borrow from future years to approve any project. Seconded by David White. Discussion.' Pardee would ,oppose the motion. The Commissicn should not recommend that allocation be.made available. Recommend instead that Council not eliminate the allocations. The Commission should not be perceived as a body which encourages growth. The Commission should encourage the options. He preferred the phrasing "the Commission recommend that Council not eliminate this year's quota from future allocation." White supported the language of the current motion, the motion as it stands is positive. The amended motion is negative. Pardee argued the existing language could be interpreted as a pro growth position. Harvey interrupted. There is a difference of opinion as to how the system works: Kaufman is saying that.the Commission should take this action or the allocation is eliminated. Kaufman stated he does not want the allocation eliminated. If the Commission wants to change the motion, let the motion state that the Commission requests that the allocation not be eliminated and be made available for future use. Pardee questioned the statement that the allocation disappears. The only time the allocations disappeared was when Council took affirmative action. Hunt suggested amending the .motion to direct the planning office to draft a resolution with the appropriate language depending on what the circumstances are. It is unclear at this time whether eliminating the allocation requires Council action or whether to carry over the allocation requires Council action. Penne stated the Commission is not even required to make a recommendation on quota. Kaufman said the dispute is over semantics. The basic concept is the - Commission does not want the quota eliminated. w Welton Anderson amended the motion to read: "The Commission recommends to Council not to eliminate the 17 The amended motion is seconded by David White. Discussion. Wallin asked if one were to vote in the affirmative would the unused allocation be added every year. Harvey explained the motion addresses only the 1984 quota.. Hunt recalled that in prior years the city has, used previous years unallocated quotas. Did it take Council action to eliminate the unallocated quotas? Hunt asked if Council does not take action what happens to the unal- located quota. Penne replied if Council were not to take action then the unallocated quota would be carried over. Harvey said that issue is not clear. Hunt preferred a resolution. Harvey called for a roll call vote on the motion on the floor: Pardee nay white nay Hunt nay Fallin nay Anderson aye Harvey aye Tygre nay The motion is not carried: two in favor, five in opposition. Harvey directed the planning office to prepare a resolution which outlines the Commission's position. Find out if the Commission were not to do anything would the allocation be dropped or carried forward. If the allocation were to be dropped .then the Commission would favor a, resolution which recommends the allocation be carried forward. If Council were not to act on the allocation carry over and if the allocation were not dropped by the Council's inaction then there would be no action by this Commission. J. Wells asked given Council's bias does the Commission want to take no position. Kaufman said there is a difference between what happened in previous years and what happened last year. At the same time the Council eliminated the quota Council eliminated a large amount of available quota. The quota in the o (office) zone is 4,500 square feet. That makes it virtually impossible .to complete a 6,000 square foot building. He would like to see that 1984 allocation carried forward. It is important for the Commission: to make a positive statement on this as opposed to no-statement at all. Hunt said the issue is how to word the statement. That is why he �� 18 •_• 1• tl1_ }, EFV#Ti 470F_11 !• 1411. • } • ••' • R• wants the planning office to research and write the resolution. Harvey directed Penne to determine if the Commission were not to do anything then would the allocation automatically go forward. Bring back a resolution. NEW BUSINESS NUGGET LODGE, SPECIAL lREVIEW Penne said the Nugget went through condominiumization on August 7, 1984. It was not understood at that time that the FAR was to be increased. The plans presented did not detail that informa- tion. HPC reviewed and approved the elevations of the design. But, the FAR is increasing from 18,300 square feet to 19,90.0 square feet and from a ratio of .68:1 to .72:1. There will be a large lobby area. The existing decks and solariums will be enclosed. There will be some covered access walkways. Height will not be increased. The renderings are included in the Commission's packet. The design is.an improvement. There are no adverse impacts on the neighborhood by this slight increase in FAR. The possible maximum FAR. in L -3 zone is 1:1. But any increase in FAR has to be approved by the Commission. That is why the applicant is before the board. The Commission takes final action on this request. Harvey asked if there is any increase in the footprint. Anderson answered yes. Harvey said the expansion is toward Main Stree= for entrance area. What is the old setback? What is the new setback on Main Street? Anderson measured the expansion at six feet. Augie.Reno, applicant, said the setback will be eight feet after the expansion. Anderson said the required setback is ten feet. Harvey asked if this action requires a variance. Reno replied no; the expansion is eight feet from the building.. Harvey asked if the only location for increase in the footprint is the lobby area. Reno answered yes. Kaufman, counsel for the applicant, said it was his fault for not mentioning the increase during the condominiumization process. The FAR increase was one of many things his client was committing to when his client received his condominiumization approval. Kaufman did not know at the time of condominiumization that the closing of the walkways and decks increased the FAR. The increased FAR should have been reviewed and addressed concurrently with the condominiumization discussion. Any increase in FAR in the L -3 zone requires special review approval. It was spelled out in the condominiumization that his client intended to do the enclosures. 'The enclosures were part of the $350,OOO.figure for remodeling. He apologized. 19 a� t RECORD OF PROCEEDINGS Harvey asked if the Commission has any problem with the request. He asked if the plans can be part of the approval. Kaufman suggested the language in the motion "as spelled out on the added FAR floor plans attached that show specifically what his client is asking for." Penne noted the Commission is setting the FAR and is setting what the FAR is being used for. These plans will be sent to the,, building department so they can check this particular remodeling. Harvey said the approval should cite that the increased FAR will be in the form described in the second paragraph of the planning office memo dated October 2, 1984. Reno presented the floor plans for the proposed expansion and enclosures. He delineated the open space to be covered, the. proposed two foot projection, the lobby area, etc. Kaufman continued. If his client were to later discover that he needed to inc -rease the approved 1,500. square feet for a three foot overhang-which was not even considered, then Drueding might say that the three foot overhang is not allowed because the 1,500 square feet only includes the lobby, the solarium, and the covered walkway. Kaufman does not want to have to return again for special review approval for a three foot overhang projection; Harvey suggested language: "increased lobby area, enclosing the existing decks with solariums,. and adding additional covered access walkways..." Harvey did not want to see the applicant construct an e -ght foot tower. He wanted to pin down the approval. Does that language accommodate the applicant? Penne explained the problem. with an open ended approval. It is required in the L -3 zone when FAR is increased to define the increase. Randy Gold, applicant, stated he could live with Harvey's wording. How- ever, he does not want Drueding to deny something which is included in the plans but not included in the language of approval. He would accept Harvey's wording with the drawing. Harvey - replied as long as Gold-works within the set FAR then Drueding will not do that. Harvey cannot approve an open ended increase in the floor area ratio. • •� Welton Anderson moved to approve the special review for the increase in exterior floor area ratio for the Hotel Aspen, also known as the Nugget, from its present 18,297 square feet to 19,915 square feet, increasing its FAR from .68:1 to :72:1. The increased FAR will be in the form of increased lobby area, enclosed existing decks with solariums, and added additional covered access walkways. There will not be any increase in the height. The motion is. seconded by Jasmine Tygre. All in favor; motion carried. 20 i� 4kSPEN *PITKIN ENVIRONMENTAL HEALTH DEPARTMENT September 11, 1984 Doug Graybeal G5 ? 0 W _�= I Hagman Yaw Architects � 210 So. Galena St. r;� 1 319M Aspen, CO 81611 RE: Carbon Monoxide Removal System. Dear Doug: This office has contacted the Colorado Health Department's Air Pollution Control Division to determine the feasibility of having The Lodge - Top of Mill - Galena install an air - cleaning system for the underground parking structure. Adequate air- handling facilities will have to be designed into the complex to eliminate any build -up of air contaminants inside the parking structure. However, it is apparent that the systems that exist to remove carbon monoxide from such areas before the air is exhausted would not be satisfactory for this facility. They would be prohibitively costly and possibly inefficient as well. For this reason, we will not require a filtration system to be installed. _ It will be necessary for your engineers to design an air moving and exhaust system that will very efficiently remove exhaust gases from the underground parking areas. Especially at Aspen's high altitude, carbon monoxide should not be allowed to build up in this structure. If you have any questions, please feel free to call this office. cc: Aspen /Pitkin Planning Office 130 South Galena Street Sincerely, Thomas S. Dunlop Environmental Health Director Aspen, Colorado 81611 303/925 -2020 ASPEN T70LT1-,1T ATT:? PUD FLOOR AREA AND FLOOR AREA RATIO ANALYSIS Aspen /Pitkin Planning Office Anrri1 _1.0, 1.�'On LOT 1 ASPEN MOUNTAIN LODGE 1. Lot area excluding vacated rights- of -way.1 '211,254 s.f. 2. Lot area including vacated rights -of -way. 241,107 s.f. 3. Proposed external Floor area.2 310,275 s.f. 4. Allowable e. ternal. floor area unc,cr existing zoning excluding vacated rights- of- way. 220,309 s.f_. L -1 floor area (21,009 s.f. n 1:1 FAR) _ 21,089 s.f. L -2 floor area (172,112 s.f. n 1: 1 FAIT) _ ,172,112 s.f. CL floor area (18,054 s.f. @ 2-:1 FAR) = 36,108 s.f. 5. Allowable internal. PAP, under existing zoning excluding vacated rights- of- waN,,.3 1.09:1 2 ?9,309 s.f. floor area /211,2_54� s.f. lot area 6. Allowable external floor area under existing zoning including vacated rights -of -way. 263, 74 s.f. L -1. floor area (26,368 s.f. n 1 :1. PAR) = 26,36^ s.f. L -2 floor area (192,172 s.f. 1:1 FAR) = 1032,172 s.f. CL floor area ( 22,567 s.f. 0 2 :1 FT -,r) = 45,139 s.f. 7. Allowable external PAP uncae•r ex sting zoning including vacated: rights- of -w_-y. 1.09:1 263,674 s.f. floor area/ ?41,107 s.f. lot area 8. Proposed external. FAR excluding vacated rights-of -way. 1.47:1 31.0,275 s.f. floor area /%11,254 s.f. lot area 9. Proposed eternal FAR including vacated rights -of -way. 1.29:1 310,275 s.f. floor area /241,107 s.f. lot area LOT 2 SUMMIT PLACE CONDOMINIUMS 1. Lot area. 5,360 s.f. 2.. Allowable external PAP under exi.stinc, zoning. 1:1 3. Allowable floor area under existing zo -ing. 5,360 s.f. 4. Proposed external floor area-4 -7 ,f66C s.f. 5. Proposed', external FAR. 1.43:1 Page 2 LOT 3 TOP OF MILL CONDOMINIUMS 1. Lot area excluding vacated right- of -way.5 240,128 s.f. 2. Lot area including vacated right -of- -way. 242,x;13 s.f. 3. Lot area excluding vacated right -of -way and land zoned Conservation.6 135r128 s.f. 4. Lot area including vacated right -of -way and excluding land zoned Conservation. 1.37,313 s.f. 5. Proposed external floor area. 101,000 s.f. 6. Allowable external floor. area under existing zoning_ excluding vacated right -of -way and land zoned Conservation.7 72,000 s.f. L -2 floor area (45,000 s.f. 2 1:1 FAR) = 45,000 s.f. R -15 (PUD) (L) floor area (90,128 s.f. lot area /15,000 s.f./lot- approximately 6 ci.ngle- family lots) 6 lots r approximately 4,500 s.f. floor area /lot = 27,000 s.f. 7. Allowable external FAP under existing zoning excluding vacated right -of -way and land zoned Conservation. +0.53:1 72,000 s.f. floor area /135,128 s.f. lot area 8. Allowable external floor area under existing zoning including vacated right -of -way and excluding land zoned Conservation. _s- 72,170 s.f. L -2 floor area (45,000 0 1:1 FAR) _ 45,000 s.f. R -15 (PUD) (L) floor area (92,813 ..f. lot area /15,000 s.f. /lot = approximately 6 single- family lots) 5 lots 0 approximately 4,500 s.f. floor area/lot - 22,500 s.f. 1 lot P approximately 4,670 s.f. floor area = 4,670 s.f. 9. Allowable external FAR. under existing zoning, including vacated right- of -laay and excluding land zoned Conservation. +0.52:1. 72,170 s.f. floor area/1.37,81.3 s,.f. lot area 10. Proposed external. FAR' excluding right -of -way and land zoned Conservation. 0.75:1 101,000 s.f. floor area /135,128 s.f. lot area TOTAL ASPEN MOUNTAIN PUD 1. Lot area excluding vacated rights -of -way. 478,342 s.f. Page 3 510,880 s.f. 1.1. Proposed external FAT: including right -of -way and excluding land zoned Conservation. 0.73:1 4. 1.01,000 s.f. floor area/1.37,813 s.f. lot area 12. Proposed external FAR excluding right- of- wa -, ; ;1 405,880 s.f. 5. and including land zoned Conservation. 0.42:1 6. 101,000 s.f. floor area /240,128 s.f. lot area 13. Proposed external FAR including rights --of -way and lane. zoned Conservation. 0.42 :1 7. 101,000 s.f. floor area /242:813 s.f. lot area LOT 4 700 SOUTH GALENA CONDOMINIUMS 1. Loot area. 21,600 s.f. 2. Proposed external floor area. 19,260 s.f. 3. Allowable external floor area under existing L -2 zoning. 21,600 s.f. 21,600 s.f . (? l : 1 FAR +362,804 s.f. 4. Proposed external FAR. 19,260 s.f. floor area /21,600 s.f. lot area 0.89:1 TOTAL ASPEN MOUNTAIN PUD 1. Lot area excluding vacated rights -of -way. 478,342 s.f. 2. hot area including vacated rights- of -wa.. 510,880 s.f. 3. Lot area excluding vacated rights -of -way rind land zoned Conservation. 373,342 s.f. 4. Lot area including vacated rights -of -way and excluding land zoned Conservation. 405,880 s.f. 5. Proposed external floor area.` 438,203 s.f. 6. Allowable external floor area under existing zoning_,, excluding vacated rights- of -way and land zoned Conservation. i_328,269 s.f. 7. Allowable external FAIR uncler existing zoning excluding vacated rights- of -cvay an,_': land zoned Conservation:. x-0.88:1 3287259 s.f. floor area/373,342 s.f. lot area 8. Allowable external floor area under existing zoning including vacated rights -of -way and excluding land toner.', Conservation. +362,804 s.f. 9. Allowable external FAR under existing zoning includinn vacated rights -of -way and excluding land zoned Conservation. +0.89:1. 362,804 s.f. .floor area /405,2^0 s.f. lot area 10. Proposed external. FAR excluding righty -of -way and land zoned Conservation. 1.17:1 438,203 s.f. floor area /373.'42 s.f. lot_ area Page 4 1.1. Proposed external FAR including rights -of -way and excluding land zoned Conservation. 1.08:1 433,203 s.f. floor area /405,080 s.f. lot area 12. Proposed external. FAT' excluding rights -of -way and including land zoned Conservation. 0.92:1 438,203 s.f. floor area /478,342 s.f. lot area 13. Proposed external FAR including rights -of -way and land zoned Conservation. 0.86:1 438,203 s.f. floor area /510,880 s.f. lot area Footnotes 1 22,654 s.f. of Dean Street and 7,199 s.f. of Lawn Street. 2 Conceptual PUD /subdivision approval (subject to r.evie.-q of remainder of PUD, City Council. Resolution Teo. 84 - -11, Series of 1924) . i-1hile the Municipal Code rakes no specific reference to the exclusion of vacated lands in FAR calculations, Section 24 -2.5 states in part that in determining land available for development, there shall be excluded from the calculation of allowable density or required open space those areas of the development tract acquired by vacation." Density (i.e., dwelling units /acre) with' respect to lodge uses is a function of allowable FAR vahich in turn is a function of site area. It ,,could appear to follox•i, therefore, that vacated lands are excluded from the calculation of allo,,-,able FAP, for lodge uses since they must be excluded from the calculation of allowable density "in determining land available for development." Substantiation of this interpretation, however, falls within the area of Council policy. 4 Approximately 5,112 s.f. currently exist on Lot 2. 5 2,685 s.f. of South Pill Street. 6 105,000 s.f. of land above the 8040 elevation is zoned Conservation. 7 In those cases in which a buil.dincr site is located in more than one zone district, a structure's maximum eternal. floor area is the sum of the allowable external floor areas for those portions of the site in each zone district, provided, however, that the structure or use in question is permittedd in each zone Oistrir_t and that each district has an applicable external floor area limitation. Lodge uses are prohibited in the C, Conservation zone district. As result, that portion of the site zone,' Conservation theoretically, could not be used for purposes of calculating external floor area for structures or uses permitted elsewhere on the property. Furthermore, there is no external floor area limitation imposed on the Conservation zone c.3istrict and, therefore, no ability, to aggregate, allowable external. floor area as outlinela above. From -preact:icGl perspective, inasmuch as external FAR is a numerical statement of the relationship of the size of a. structure to its building site, it would seem logical in mixed use PUD's to compare total }wilding square footage to total building site. The Maunicipal. Code is essentially silent. ,-ith respect to the above issues, and, therefore, any interpretation is subject to Council policy. 8 The 90,120 s.f. lot area assumes, for purposes of this analysis, that the 14,500 s.f. of City -owned lard will be conveyed to the applicants and rezoned from Public to 7 -15 (PTJD) (L) . While the 90,128 s.f. R- 15 (PUD) (L) parcel could also be subdivided in a single- far:-tily /duplex lot configuration, the subdivision depicted produces the maximum allowable external floor area and has, therefore, been uses for compar- ison purposes. Page 5 9 Conceptual. PUD /subdivision approval (subject to review of remainder of PUD, City Council_ Resolution tdo. 84-11, Series of 1924). ` � \ TOP OP POTENTIAL UNIT BDILDODT Aapcn/Pit in Plannin9 O-F fice ,�pcil IO/ 19D0 LOT 3 TOP OF MILL 1. Lot area, (PIJID) (L) = 75,628 S.f. L-2 = 45,0 0 0 S. -f, Public = I4,500 o.f. Conservation = I05'0 00 s.f. 240,128 o.f. ` 2. - Pot ential unit boildoOt. r.-I5 (pup) (L) 3 .I.oI-)ler lots � 20,000 s.f./lot = 6 units 3 single-family lots C approx. I5,000 S,-Lr'/lot = 2 ooitn ' L-2 4515,00O n.f. lot rcea/3,0OO s.�. --Floor lnoc acea/unit 2 = ±I5 units Conservation &oplicaots/ 94,000 o T?accel3 = I unit City's I1,000 S.f. paZCeI3 = l Onit -------- TOTAL ±25 units I Assumes I4,500 o.f. Public parcpl z22one(11 to R-IS (L) . 3yT0 minimum lot area rncfuicement for ci�gIe-�a�il�'/�uplcz units in the L-2 zone district; oombec o-F units aIIn,/ed is a 37unCtinn of unit size and aIIonabI8 floor area. ��snumsS 3/000 s. J-. n� �Inoz actea oe[ dwelling unit as prOpooed hn aI�I?liCaot�, alI�ms one sioqle-��m�I� by on a non-coDfozminq lot of record. • l• U / /07 Z 7e- i o� jam• _ /G - s O l 14. IA r �' �' �'� - -- - �'�G�l.�ti C CI' � L. 5� G� � C' �'j7/LG> • •., G� -4G(S' — • ISM • I hereby certify that on this J(= day of 198, a true and correct copy of the attached Notice of Public Hearing was deposited in the United States mail, first -class postage prepaid, to the adjacent property_ owners as indicated on the attached list of adjacent property owners which was supplied to the Plannaing Office by the applicant in regard to the case named on the public notice. Na -rell M I x: Alpenblick Townhouses (A Condominium) 20 Units Record Address: Alpenblick Townhouses Condominium Association 99 Equitable Bldg. Denver, Colorado Managed by: Condominium Rental Management, Inc. 747 South Galena Street Aspen, Colorado 81611 Aspen Inn Apartment Condominium 11 Units (There is no record address of the Condominium Association in the Condominium Declaration, therefore the notices will be sent to the current record owners) Bob J. Scarborough- Units 1A, 1B, 2A, 2B, 2C, 2D & 3D 8 as op n t III,, L. 15uWC L(.)&LP Aspen -^C'o` ora o $2'M David G. Elmore - Unit 3B 10001 East Evans Denver, Colorado 80231 Robert Prentis Morris - Units 3A & 3C Box 9069 Aspen, Colorado 81612 Hans B. & June Cantrup - Unit 1C Box 388 Aspen, Colorado 81612 Dolomite Villas . Record Address: Dolomite.'Villas Condominium Association Box 2678 Aspen, Colorado 81612 . Current Address: 650 South Monarch Aspen, Colorado 81611 James S. & Meryl N. Hearst Box 67 Aspen, Colorado 81612 Theodore T. & Mary E. Armstrong Box 1524 Aspen, Colorado 81612 John J. Dolinsek & Frank L. Dolinsek, Jr. Box 275 Aspen, Colorado 81612 Herbert P. Balderson & Joseph B. Cabell 708 Spruce Street Aspen, Colorado 81611 -5- 12 Units Canada House of Aspen, Ltd. 411 South Monarch Street .Aspen, Colorado 81611 City of Aspen 130 South Galena Street Aspen, Colorado 81611 }j. Mountain Chalet Enterprises, Inc. 333 East Durant Aspen, Colorado 81611 Max E. & Jayne Frances Freeman 329 Lake Avenue Aspen, Colorado 81611 Preston H. & Claudia R. Hill 3910 South Hillcrest Drive Denver, Colorado 80237 Effie M. Ecklund Lerner, 'Trustee 221 North Kentworth Avenue Oak Park, Illinois 60302 Christopher Carvell & Stephen Berlin 2553 Dexter StreeC Denver, Colorado 80203 Margery A. Kleiner Box 4191 ,Aspen, Colorado 81.612 John P. Kleiner 327 Bartlett Court Eau Claire, Wisconsin 54701 Luke W. Anthony. 1601 East Mississippi Denver, Colorado 80210 Dated: April 30, 1984 ASPEN TITLE COMPANY, LTD. �, „ • L, "Melville" Lots,17 and 18 Block 2 _ DEAN'S ADDITION M. "Hillside Lodge" Lots A and B 1 Block 91 CITY AND TOWNSITE OF ASPEN N. "Bass" Lots 9 and 10 Block 3" CONNOR'S ADDITION PROPERTY OWNERS Aztec Condominiums Record Address: Aztec Condominium Association, Inc. 131 East Durant Aspen, Colorado 81611 The Durant Galena Condominiums Record Address: The Durant Galena Condominium Association, Inc. c/o Steve Marcus Box 1709 Aspen, Colorado 81612 North of Nell Condominiums Record Address: North of Nell Condominium Association Box NN Aspen, Colorado 81612 Current Address: 555 East Durant Aspen,.Colorado 81611 Tipple Inn Condominiums Record Address: Tipple Inn Condominium Association Board of Governors 747 Galena Street Aspen, Colorado 81611 Managed by: Condominium Rental Management, Inc. 747 South Galena Street Aspen, Colorado 81611 -4- 6 Units 2 Units 59 Units 12 Units �4 • • PUBLIC NOTICE RE: Aspen Mountain Lodge Preliminary GMP /Subdivision NOTICE IS HEREBY GIVEN that a publ November 20, 1984, at a meeting to begin Aspen Planning and Zoning Commission, in S. Galena, Aspen, Colorado, to consider Preliminary GMP /Subdivision Submission for PUD. is hearing will be held on at 5:00 P. M. , bef ore the City Council Chambers, 130 the Aspen Mountain Lodge the lodge portion of their . For further information, contact the Planning Office, 130 S. Galena, Aspen, Colorado 81611 (303) 925 -2020, ext. 224. s /Perry Harvey Aspen Planning and Zoning Commission Published in the Aspen Times on October 18, 1984. City of Aspen Account. El MEMORANDUM a TO: City Attorney City Engineer Housing Director Aspen Water Department Environmental Health Department Aspen Consolidation Sanitation District Fire Marshall Fire Chief Building Department Zoning Enforcement Officer FROM: Alan Richman, Planning Office RE: Aspen Mountain Lodge Preliminary GMP /Subdivision DATE: October 11, 1984 Enclosed for your review is the Aspen Mountain Lodge Preliminary GMP /Subdivision submission for the lodge portion of the project. Please review this material and return your referral comments to Alan Richman of the Planning Office, no later than November 51 1984, in order for this office to have adequate time to prepare for a public hearing before the Pitkin County P &Z on November 20th. Thank you. • i ti.� a aspen,,colorado 81611 30 _1i­-925 _220 MEMORANDUM DATE: October 5, 1984. TO: City Manager FROM: City Attorney RE: Aspen Mountain Lodge PUD /Subdivision: Donation of Approxi- mately 40,931 Square Feet of Koch Lumber Property Annexed is a letter dated September 21, 1984, formally and irrevocably offering to donate to the City, as a charitable gift, the 40,931 square feet of the Koch Lumber Property.-which will remain following the land exchange involving the City -owned par- cels at the top of Mill Street. Please note that the offer is contingent upon: ( 1 ) the City obtaining, at its sole cost and expense, an appraisal from a local MIA appraiser.of the current fair market value of the property to be donated,. assuming that the property was put to its highest and residential use under present zoning and other applicable land use regulations; and - (2) dedicating the entire Koch Property to the perpetual use and enjoyment of the public.for parks /o -ben space /recreational pur- poses; and (3) the closing of the Koch Lumber Property in connection with the Cantrup bankruptcy. As you know, we are scheduled to meet next week with the legal counsel and other planning representatives of the applicants to begin the process of preparing an acceptable PUD /Subdivision agreement. Assuming you will have a more informed. idea of the intricacies of the Aspen Mountain Lodge project after the meeting, I would thereafter appreciate your suggestions with regard to the mechanics and time of accepting the proposed donation. In this regard, I have appended a "rough draft" resolution. of acceptance. PJT /mc Attachment cc: City __Co.uncil Pla,nning_`Director City Engineer P DENVER OFFICE SUITE 2900 685 SEVENTEENTH STREET OENVER,COLORADO 80202 TELEPHONE (303) 795-8000 TFLECOPIER (30:,1 295.8261 MONTANA OFFICE 6UITE 1400 175 4ORTH 27TH STREET fiILLINGS, MONTANA 59101 TEI- EPHONE (AO6) 252.2166 TELECOPIER (AO6) 252 -1669 ARTHUR C. DAILY E Aspen City Council 130 South Galena Aspen, Colorado 81611 HQ"L.AND & HART ATTORNEYS AT LAW 600 EAST MAIN STREET ASPEN, COLORADO 81611 TELEPHONE (303) 925 -3478 September 21, 1984 E-7, Re: Offer of Land Donation Dear Mayor Stirling and Council Members: WASHINGTON, 0. C. OFFICE SUITE 1200 1875 EYE STREET, N. W. WASHINGTON, D. C, 20008 TELEPHONE 1202) 4815 -7340 TELECOPI ER (202)468-%354 WYOMING OFFICE SUITE*500 2020 CAREY AVENUE CHEYENNE,WYOMING 82001 TELEPHONE (307) 632 -2160 TELECOPIER (307) 778 -8175 S. E.DENVER OFFICE SUITE 1250 7887 EAST BELLEVIEW AVENUE ENGLEWOOD, COLORADO 80111 TELEPHONE (303) 741 -1226 By letter to the Aspen City Attorney dated March 1, 1984, the owners of the Aspen Mountain Lodge P.U.T.). /Subdivision project pro- posed to trade to the City of Aspen approximately 21,084 square feet of the "Koc:h Lumber" property (together with several ancillary Considerations) in exchange for certain City -owned lands located within the Planned Unit Development area and described as Lots 7, Or 9, 10, 11, 12, 14 and 15, Capitol Hill Addition, containing approximately 20,860 square feet. Unde,. the terms of City Council Resolution No. 23 (Series of 1984), this land trade proposal was Consented to and adopted by the City. Following-the consummation of the above described land exchange, the owners will still hold title to roughly 40,931 square feet of the Koch Lumber property, and the comment has been made from time to time by interested citizens and by several Council members that if the City owned all of the property (ie. the trade parcel and the owners' remaining parcel) it could develop the area into a truly fine public park and recreational facility. We are informed, however, that the City does not have sufficient funds - available at the present time to purchase the remainder of this property from the owners. The balance of the Koch Lumber property is currently zoned R-15 (residential), and is obviously susceptible of several devel- opment alternatives. The owners have concluded, however, that their planned hotel, lodging and residential development activities on other properties within the City will demand their full energies and resources for years to come, and that the interests of the com- munity will be best served by the dedication of the entire Koch (lumber property for public open space uses. . • HOLLAND R HART • Aspen'City Council September 21, 1984 , Page 2 s Accordingly, the owners hereby formally and irrevocably offer to donate to the City as a.charitable gift the 40,931 square feet of the Koch Lumber property which will remain in their ownership following the land exchange discussed above, upon the following_ terms and conditions: 1. The initiation and completion of the "lot split" or sub - division procedures necessary to divide the Koch Lumber parcel into two (2) legally independent tracts of land,.along the internal com- mon boundary described in Council Resolution No. 23 (Series of 1984). This formal division of the property will be necessary in any case in order to consummate the land trade in a valid manner. 2. The obtaining by the City, at.its sole cost and expense, of an appraisal from a local M.A.I. appraiser of the current fair market value of the portion of the Koch Lumber property to be donated to the City, assuming that such property were to be put to its highest and best residential use under present zoning and other applicable land use regulations. 3. The taking by the City of such steps as are necessary to dedicate the entire Koch Lumber property to the perpetual use and enjoyment of the public for park /open space /recreational purposes. 4. The closing of the owners' purchase of the Koch Lumber property from the Cantrup Bankruptcy Estate. Assuming the satisfaction of the foregoing conditions, they.` owners hereby commit to convey the remainder of the Koch Lumber-`. property to the City by Special Warranty peed, free and clear of liens and encumbrances, no later than sixty (60) days following the consummation of the above described land exchange. We would appreciate being advised as promptly as possible as to the City's position with respect to this offer. Very truly yours, Arthur C. Daily for HOLLAND & HART ACD /sr cc: Paul Taddune, Esq.. City Attorney f k� k 1 RESOLUTION 140. r. (Series of 1984) A RESOLUTION ACCEPTING A DONATION OF APPROXIMATELY 40,931 SQUARE FEET OF THAT PROPERTY LOCATED WITHIN THE CITY OF ASPEN, COUNTY OF PITKIN, COLORADO, COMMONLY KNOWN AS THE KOCH LUMBER PROPERTY WHEREAS, an.offer to donate to the City an approximate 40,931 square foot portion of that property commonly known as the Koch Lumber property has been tendered to the City in the form of a letter from Arthur C. Daily, attorney for the owners of the afore- said parcel, a copy of which is annexed hereto and incorporated herein; and WHEREAS, the City Council desires.to accept the aforesaid donation as described in the proposed deed, a copy of which is annexed hereto and incorporated herein as Exhibit "B ". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1 That the City of Aspen hereby accepts the donation of approx- imately 40,931 square feet of that property located within the City of Aspen, County of Pitkin, Colorado, commonly known as the Koch Lumber parcel and more specifically described in that pro- posed .deed annexed hereto and incorporated by reference as Exhi- bit "B ". Dated: , 1984. William L. Stirling, Mayor I, Kathryn S. Koch, duly appointed and acting City Clerk do . certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held , 1984. Kathryn S. Koch, City Clerk' '- 3`796 Regular Meeting Aspen City Council September 24, 1984 Councilman Blomquist said Cole's plans where done when there was a different concept about the space needs for city hall. Councilman Blomquist said he would like bids on this. Councilwoman Walls pointed out there are people in town, rather than Glenwood Springs, who could do the work. Mayor Stirling agreed Council should know what the space requirements are, and these are related to the management audit. Councilman Knecht said he does not i want to spend any money on city hall other than the space that will be vacated. Mayor Stirling moved to direct the city manager to solicit bids for this project tied to divulging what the space needs are; seconded by Councilman Blomquist. i City Manager Schilling said the building department moving djwnstairs could be handled in- house but the city needs to fix some major dysfunctions in the building, especially in the various parts of the finance. There are high level finance employees who are working in halls and constantly interrupted.' Courcilman Collins said the Council should decide the level of expense and remodel they want to have done. Schilling agreed he is not i interested in spending a lot of money on this building until Council decides where they want city hall. Mayor Stirling withdrew.his motion. it BOARDS AND COMMISSION REPORT City Clerk Kathryn Koch reported she had researched all the Boards. There are three expired terms on P & Z and HPC; two on the Wheeler Board. There are two vacancies on the Clean Air Advisory Board and one on the Commercial Core and Lodging Commission. Ms. Koch reported the Mayor has written letters to members whose terms have expired, and will advertise the vacancies. LIQUOR LICENSE RENEWALS Councilman Knecht moved to approve the renewals of R. Pea's; O'Leary's; Roaring Fork & Spoon Aspen Art Museum; Nick's fresh Seafood; seconded by Councilman Collins. All in favor, motion carried. Mayor Stirling said he would like to add to this agenda the deadline of submittal for preliminary plans for the Aspen Mountain PUD or have Council continue this meeting until right before the budget hearing September 25 at 3:00 p.m. Mayor Stirling moved to add this item to the agenda; seconded by Councilman Knecht. Councilman Knecht, Mayor Stirling in favor; Councilmembers Blomquist, Collins and Walls opposed. Motion NOT carried. f Mayor Stirling moved to continue this meeting to Councilman Knecht. Councilmembers Walls, Knecht Blomquist and Collins opposed. Motion carried. Council left Chambers at 9:30 p.m. II 3:00 p.m. September 25, 1985; seconded by and Mayor Stirling in favor; Councilmembers } J Kathryn S. och, City Clerk Continued Meeting Aspen City Council September 25, 1984 Mayor Stirling opened the meeting at 3:10 p.m. with Councilmembers Knecht and Collins present. City Attorney Taddune said there is a question on interpretation of the procedural require- ments of the PUD of the Code. Taddune said he feels the preliminary plat application can be filed after the approval of the second resolution, which approved the residential component. The applicants are questioning if they have to file preliminary within six months of the first resolution. The city is taking the position that no construction can start until the whole project has been approved, so it is reasonable to conclude the applicants have six months from the second resolution rather than the first. �I i Art Daily, representing the applicant, said Council's position is that there was no conceptual approval of the Aspen Mountain Lodge project until final action was taken by Council. However, the first resolution on the lodge portion contained a six month deadline for filing preliminary. Daily said he did not feel that was the intent and would like an amendment saying the preliminary submittal is due six months from the date of final approval by Council. Taddune said he feels this would be consistent with his interpretation of the phased processing. Mayor Stirling asked if this action would put the city at a disadvantage. Taddune said this does not put anyone at a disadvatange to take as much time as necessary to review a project. Sunny Vann, planning director, reminded Council when they were discussing the first resolution for the lodge portion of the project, Council added that conceptual approval of the lodge was not valid until the rest of the project was reviewed and approved. Vann did not remove the six months clause in the first resolution. Vann agreed the deadline for preliminary submittal should be six months from the date of adoption of the employee housing resolution. Vann said all three resolutions consitutes Council approval of the entire PUD. Councilman Knecht moved preliminary submittal becomes due six months from the third resolution; seconded by Mayor Stirling. All in favor, with the exception of Councilman Collins. Motion carried. 3795 Regular Meeting Aspen City Council September 24, 1984 thing that would prohibit a parking lot. Councilman Blomquist said this property is being purchased with the land fund for open space. Councilman Blomquist said the city should continue the railroad tie wall and stop the cars from parking there. Summers said the staff is just suggesting this as an alternative as there is not enough parking in town. Councilman Blomquist said this is the way the impound lot got located on the Rio Grande property and he does not want to waste priceless public property. Councilman Knecht said as a temporary lot, it is a good idea. Councilman Knecht suggested seeing if the First National Bark would pay for this. Councilman Blomquist said this is creating a private j parking lot on public property. Summers said the staff felt this would be a good use for I property whose ultimate use has not been decided. Councilman Blomquist moved to disapprove the proposal and build a fence to keep cars from parking on public park; seconded by Councilman Collins. Councilmembers Blomquist and Collins in favor; Councilmembers Knecht, Walls and Mayor Stirling opposed. Motion NOT carried. Councilman Knecht moved to do this proposal, approach the First National Bank and have them pay for it but it will be public parking; seconded by Mayor Stirling. Councilman Knecht said if the bank doesn't want to pay for it, then leave the property the way it is. Councilman Blomquist said the city charges businesses for using the mall, and the city should be charging for use of public land if it is used for private sector purposes. Councilmembers Knecht, Walls and Mayor Stirling in favor; Councilmembers Collins and Blomquist opposed. Motion carried. ORDINANCE #30, SERIES OF 1984 - Appropriations Councilman Knecht moved to read Ordinance #30, Series of 1984; seconded by Councilman Collins. All in favor, motion carried. ORDINANCE #30 - (Series of 1984) AN ORDINANCE APPROPRIATING GENERAL FUND EXPENDITURES OF $49,475; TRANSFERRING $8,000 FROM THE LAND FUND TO THE GOLF COURSE FUND; APPROPRIATING GOLF COURSE FUND EXPENDITURES OF $13,000; RECOGNIZING ICE GARDEN FUND REVENUE OF $72,000' APPROPRIATING ICE GARDEN EXPENDITURES OF $72,000 was read by the city clerk Councilman Knecht moved to adopt Ordinance #30, Series of 1984, on first reading; seconded by Councilman. Blomquist. Roll call vote; Councilmembers Blomquist, aye; Collins, aye; Knecht, aye; Walls, aye; Mayor Stirling, aye. Motion carried. REVENUE SHARING PUBLIC HEARING Mayor Stirling opened the public hearing. Finance Director Sheree Sonfield told Council they must have a hearing on the use of the federal funds from revenue sharing. Ms. Sonfielc said these funds must be used for any service that benefits the general public. In the past, the staff has reported using 70 per cent for police protection and 30 per cent for general administration. Councilman Blomquist moved to use the projected $98,000 of revenue sharing funds for public parks in 1985. Motion DIES for lack of second. Councilwoman Walls moved t0 use $98,000 projected revenue sharing funds for police protection purposes; seconded by Councilman Knecht. Councilman Blomquist said the city should not rely on these funds, and police protection should be funded. All in favor, motion carried. Councilman Collins moved to continue the public hearing on the budget to October 9, 1984; seconded by Councilman Knecht. All in favor, motion carried. RESOLUTION #31, SERIES OF 1984 - Elective Water Conservation District Board Councilman Blomquist said the judges currently make the appointments and is not sure of the advantage of having this be an elected office. Mayor Stirling pointed out when members are appointed it is like taxation without representation; also there is no provisioi for geography, which might leave some areas unrepresented. Mayor Stirling said water is one of the most important resources in Colorado. Councilman Knecht moved to approve Resolution #31, Series of 1984; seconded by Councilwoman Walls. Councilman Collins said the Council has not had the opportunity to hear the other side of the arguments. Councilman Collins said this seems to be very lopsided. Councilmembers Knecht, Walls and Mayor Stirling in favor, Councilmembers Blomquist and Collins-opposed. Motion carried. CONTRACT /SPACE ANALYSIS Councilman Blomquist asked if any other firm had been asked for a proposal. Assistant City Manager Ron Mitchell said when Council approved the move of the police department, he spoke with Greg Cole, who did the original design on the assumption he could get the job done faster because he is familiar with city hall. Councilman Blomquist said he feels the city manager should do an analysis of space needs before it gets to the architecture. 3775 Regular Meeting Aspen City Council August 27, 1984 Vann told Council the Ute City Place is a multi - family structure and is subject to the city's subdivision regulation. The conditions in section 3 are from the prior subdivision review of the project with minor changes. Condition #2 the engineering department requests the applicant to re- evaluate the parking access before preliminary. Mayor Stirling pointed out condition #7 requires the applicant to do.things before preliminary that cannot be done. Vann agreed to change conditions 1, 3, and 4. Vann said the Council will have to reconfirm the rezoning of this property to RBO at final plat. Vann said this project could be constructed as a free market project with the RBO right now. This proposal is for a smaller footprint with better parking and better access. This project will be within the FAR, although there will be more dwelling units on the property. This application is for 100 per cent employee housing, rather than free market and employee housing. Council suggested having a condition that the applicant receive a RBO overly rezoning for Ute City Place. City Attorney Taddune said Council has to retain the prerogative to consider any input disclosed during the public hearing process. I Councilman Knecht moved to accept Section 3 addition condition #8 on the rezoning issue and taking 1, 3, and 4 so these conditions do not have to be physically in place before preliminary review; seconded by Councilman Collins. All in favor, motion carried. Margaret Albouy read a statement to Council regarding employee housing. Mrs. Albouy recommended Council shift the focus of housing to the kind of facilities needed for seasonal employees to provides for all their basic needs under one roof. Mrs. Albouy said the city should encourage seasonal employees to be truly seasonal. This facility could be used by the music students in the summer. Councilman Blomquist moved that staff bring the resolution back to Council for review of the specific language changes; seconded by Councilman Collins. Councilmembers Walls, Knecht and Mayor Stirling opposed; Councilmembers Collins and Blomquist in favor. Motion NOT carried. Councilman Knecht moved to adopt Resolution #27, Series of 1984, with the outlined amendments ai.d have the Mayor sign it; seconded by Councilwoman Walls. Councilmembers Knecht, Walls and Mayor Stirling in favor; Councilmembers Blomquist and Collins opposed. Motion carried. ASPEN MOUNTAIN PUD - Request for Staged PUD Review sunny Vann, planning directcr, reminded Council the applicants submitted the conceptual stage in two parts; the lodge component, and the residential component. There are two different dates in the Code for lodge GMP and for residential GMP. Vann said after conceptual, the planning office wanted the project to come together for preliminary and final. Vann said it has become difficult for the applicants to follow this course and they have requested the preliminary.PUD be separated as in conceptual. The main reason is the time is has taken to complete the conceptual process. Vann said staff has concluded there is the flexibility in the Code to allow this. There are some drawbacks, such as not seeing the entire project. Vann said the applicants have presented arguements to proceed in a staged review.in order to start construction next spring. Mayor Stirling said the benefits of putting the application together at preliminary are full disclosure, proper notice, the interrelationship of the two components, clarity, avoiding duplication, and making the process less tiring. Councilman Blomquist said during conceptual review of the hotel, the Council inserted a provision that the hotel was not approved until the whole PUD was approved. Councilman Blomquist said he feels the prelimin- ary can use the same step -by -step process. Councilman Blomquist said he is in favor of staging the review, and there is no preliminary approval until all stages are through. This will not proceed to final plat until all the steps have been met and the entire project reviewed. Doremus said staging this review will save more than one season, which is a benefit to the community. Councilman Collins said he would like a schedule of approvals, drawings, construction, etc. Councilman Collins said he throught the object was to have the entire project built at once and to have it fit in with the lodge improvement district. Doremus said there have been problems because of the bankruptcy; the applicants have not owned the property nor had conceptual approval. Doremus said now they have conceptual approval, they will provide a schedule. Councilman Knecht moved to allow the applicants for the Aspen Mountain PUD to phase or stage the submission and review of their preliminary PUD /subdivision application; seconded by Councilwoman Walls. Councilman Blomquist requested the motion be amended to add, "provided any preliminary stage shall not be approved until the preliminary for the entire PUD has been approved ". Councilmembers Knecht and Walls accepted the amendment. Doremus said the amendment is fine if the implication is that the city will review and comment on the various stages. Councilman Blomquist agreed with this. Vann said he would like direction from Council that this addresses only preliminary PUD submission. Vann said this approval does not automatically guarantee the applicant's right to piecemeal subsequent reviews, such as final of building permit. Council agreed. Mayor Stirling said he feels a staged review would benefit the community. All in favor, with the exception of Councilman Collins. Motion carried. ORDINANCE #25, SERIES OF 1984 - Nugget Rezoning Colette Penne, planning office, told Council when the class action rezoning for L -3 lodges was done, the legal description for the Nugget missed the east half of lots E and O. h Councilman Blomquist moved to read Ordinance #25, Series of 1984; seconded by Councilman Knecht. All in favor, motion carried. ORDINANCE #25 (Series of 1984) AN ORDINANCE REZONING TO TO LODGE PRESERVATION (L -3) THE EAST ONE -HALF OF LOTS E AND 0, AND ALL OF LOTS F, G, H, I, P, Q, R AND S, BLOCK 58, CITY AND TOWNSITE OF ASPEN, ALSO KNOWN AS 110 WEST MAIN STREET was read by the city clerk sFF,! �.J • MEMORANDUM TO: Aspen City Council THRU: Harold Schilling, City Manager FROM: Sunny Vann, Planning Director SUBJECT: Aspen Mountain PUD - Request Application DATE: August 27, 1984 BACKGROUND • to Phase Preliminary PUD As you will recall, the conceptual PUD /subdivision application for the Aspen Mountain PUD was reviewed in two stages - the lodge component of the PUD followed by the residential component. This phased review of the conceptual PUD was dictated primarily by the Applicants' need to compete in two separate GMP competitions which were held on two separate dates. With the completion of Council's review of the conceptuals submissions, the Applicants' attention has now turned to the preparation of the preliminary PUD /subdivision application. As outlined in the attached letter from John Doremus dated August 2, 1984, the Applicants have formerly requested to phase or stage the preliminary portion of their PUD application. Specifically, the Applicants wish to submit and initiate the review of the lodge portion of Y: pg.': r"U"E prior to submission of the preliminary PUD /subdivision application for the PUD's residential component. The Applicants' principal argument in favor of separating the review of the lodge component of the project from the residential component is the urgency to make financial and scheduling arrangements in order to move ahead with construction in a timely manner. A more detailed discussion of this argument is provided in John's August 21st memorandum, which is also attached. PROBLEM DISCUSSION It is my understanding that the Applicants propose to submit a prelim- inary PUD /subdivision application for the lodge portion of the Aspen Mountain PUD. Where necessary or appropriate, this application would contain information relating to the entire PUD, if such information were required to review the lodge portion of the project. For example, utility issues of the entire project would be submitted in conjunction with the lodge portion. The preliminary PUD /subdivision application for the residential component of the project would be submitted approximately 30 to 60 days following the lodge submittal. As a result, any outstanding information pertaining to the remainder of the PUD would be available for. consideration during the formal review of the lodge component. The entire PUD would subsequently track simul- taneously through the final PUD /subdivision review process. With respect to the staging of PUD applications, it is generally agreed that the Code is somewhat vague and, therefore, subject to interpretation. As Paul Taddune points out in his attached memorandum, achieving the purposes and concepts of the PUD regulations should reasonably entail the practical aspects of making a project feasible. From this perspective, it would appear appropriate for the City to take into account the various costs and /or delays associated with requiring all of the components of the PUD to be reviewed at the same time. Paul further points out that if the developer seeks accommo- dations in the form of a staged review, and asserts that they are necessary to bring the project on line in a timely and cost effective manner, it is worth remembering that it is the developer who ultimately shoulders the risk of judicial review and court reversal of the City's accommodations. ® • The obvious drawback to a stage preliminary review is the possibility of arguments raised by opponents of 'the project that the resulting hearing process is not comprehensive, that the City has deviated from its own regulations, that insufficient information is available to make enlightened decisions, and that the citizens are confused by the complexity of the staged review. Given the fact that the PUD has received conceptual approval, these concerns must be weighed against the desire to facilitate the project's progress and to minimize unnecessary costs and delays. ALTERNATIVES Councils' alternative courses of action with respect to this issue are relatively straightforward. Council may interpret the Code to provide for the staged review of PUD applications and allow the Applicants to proceed with a staged preliminary PUD /subdivision submission for the Aspen Mountain PUD. In the event Council chooses not to accommodate the Applicants, you may interpret the Code to preclude such an approach and require the Applicants to submit a preliminary PUD /subdivision application for the entire PUD. RECOMMENDATION Should you wish to accommodate the Applicants, I believe the Planning Office can adequately review a staged preliminary PUD submission. Those issues which affect the entire PUD and, therefore, must be reviewed as part of the lodge component can be identified and the Applicants have assured us that the necessary information will be available. Given the obvious tradeoffs involved between the public perception of the process and the desirability of expediting the review of the Aspen Mountain PUD, I believe a decision with respect to this issue more properly falls within the realm of Council respon- sibility. Both Paul and myself have reviewed the applicable language of the Code and believe that sufficient flexibility exists to allow Council to address the Applicants' request. PROPOSED NOTION Should you concur with the Applicants' request, the appropriate motion would be as follows: "I move to allow the Applicants for the Aspen Mountain PUD to phase or stage the submission and review of their preliminary PUD/ subdivision application." Q Dore us &company 608 east hyman avenue • aspen, colorado 81611 • telephone: (303) 925 -6866 MEMORANDUM TO: Sunny Vann FROM: John Doremus DATE: August 21, 1984 RE: Addendum to letter. dated August 2, 1984 With respect to the scheduling aspects for the proposed hotel, we.noted in our letter that our objective is to begin opera- tion of the hotel portion of the PUD beginning the 1986 -87 winter. season. In order to accomplish this, construction must begin early in the spring of 1985, therefore a ground breaking date of May,lst has been set. Two critical elements must oc- cur by that date. One is a building permit from the City of Aspen, which may take as long as two months. Second; bids must be completed and negotiated and the financing arrange- ments confirmed, and this process will also take at least two months. The foregoing tells us that construction documents, (working drawings), for the building envelope and skin must be complete by Parch lst. The chief architect for the project, responsible for the construction documents, advises that it will take five months to generate the required drawings which means a start date of October 1st. Construction documents require approval of Preliminary Drawings which the client can only give when the City Planning and Zoning Commission has approved the Preliminary Submission and the City Council has approved the Revised GMP application. It is clear to all of us that the October lst deadline is al- ready in jeopardy and that wewill have to take extraordinary measures to achieve our schedule. JD /ght e • CITY 9 ftr o QASPEN 0 130 s"outW g"46lena street aSPe coldia`do' -84611 �3QJ 92,5 1020' ! AUG 1 3 M 'I MEMORANDUM DATE: August 10, 1984 TO: Sunny Vann FROM: City Attorney RE: John Doremus' August 2, 1984, Correspondence I have the following thoughts on John Doremus' August 2, 1984, letter. 1. John seems to be requesting a staged or phased consider- ation of the preliminary review of the Aspen Mountain Project. Although you and I discussed the possibility of giving final approval within the meaning of the Municipal Code, it seems that what John is suggesting in the last paragraph of his letter is that the issues related to the entire PUD be considered on a piecemeal basis and that most matters affecting the entire PUD would be brought into clear focus'at the time the final plat was prepared. 2. In the first instance, I think that the Planning Office and the Planning and Zoning Commission should consider the plan- ning "downside" in processing a staged application as John sug- gests. Obviously, if neither the Planning Office nor the Planning and Zoning Commission are inclined to recommend a phased consider- ation there is no need for us to consider whether or not to permit such a staged review even if legally feasible. 3. Please note the language in the second paragraph of Section 24 -8.1 which provides that the provisions of this article shall be interpretted to achieve the purposes listed in the pre- ceding subsections (a) through (f). Naturally, achieving a bene- ficial land use "promoting a greater variety in the type, design and layout of buildings" and other concepts set forth in those subsections should entail the practical aspects of making a pro- ject feasible. I think it is appropriate for the City to take into account the extreme cost of delay. 4. As we discussed, subsection (d) of Section 24 -8.5 pro- vides that a building permit for any structure or permit to Memorandum to Sunny Vann August 10, 1984 Page Two develop in any manner in a planned unit development shall be issued only after the final development plan for such development has been approved by the Planning Commission and the City Council and the applicant has complied with the subdivision regulations of the City, Section 20 -1 of the Aspen Municipal Code. Interest- ingly, the word "development" appears throughout our land use code but is not defined. Depending on which way Council wants to go in this fashion, the term "final development plan" might-be construed as a plan for development which has been finally approved after meeting all of the hearing requirements set forth in the PUD and subdivision regulations. It is essential, in my opinion, that strict adherence be given to notice and hearing requirements with respect to any development which is permitted. In this regard, we must be mindful of the requirements of Section 24 -8.12 which require that any "final plan" shall conform to and contain all information required by Section 20 -15 of the Code and, in addi- tion, contain the construction schedule, landscaping plan and PUD agreement provided by Sections 24- 8.9(b), 24- 8.9(e) and 24 -8.6, respectively, all of which shall be recorded. I believe that a final development plan can accomplish all of the stated objectives and requirements and, at the same time, leave open the extent of development to be permitted in connection with certain components. Therefore, I believe that it would not be unreasonable for the City Council to approve the lodge component and all major subdivi- sion considerations with which a residential component might impact, leaving for some future date the specific development of the free market residential components. If the City Council, the Planning and Zoning Commission and Planning Office would recommend this approach, I would suggest that the permitted development of the residential component be strictly regulated in the abstract and the developer would be taking a. risk that automatic approval of the residential component as desired would not be forthcoming. At a minimum, most of the matters set forth in Section 20 -15 of the Code should be satisfied, as well as a treatment of the improvements required under Section 20 -16 as they may relate to the residential component. 5. Also keep in mind the effect of recording a final plat pursuant to Section 24 -8.22. Once a PUD final plan is recorded it constitutes the development regulations applicable to the area and limits the development of the real property to uses, density, con- figuration and all other elements and conditions set forth in the plan. Additionally, the language of Section 24- 8.26(b) permits amendments if "they are shown to be required by changes in the conditions that have occurred since the final plan was approved or ® • Memorandum to Sunny Vann August 10, 1984 Page Three by. changes in community policy ". These provisions may be liber- ally construed to allow refinements or amendments which are anti- cipated by the final plan that goes on record. The key language, in my mind, is that any changes approved in the final plan" shall be recorded as amendments to the final plan in accordance with the procedures for the filing of initial approved plan documents ". 6. One of the drawbacks of a staged preliminary review is the possibility of arguments by those who oppose the project that the hearing process was not comprehensive enough; that the City deviated from its own regulations, that citizens were and are con- fused by the magnitude of the project, etc., etc. If the devel- oper seeks accommodation through the form of a staged review and asserts that it is necessary to bring the project on line in a timely and costly fashion, it is worth remembering that it is the developer who ultimately shoulders the risk of a court reversal or judicial review of an accommodation. I hope the above comments are helpful. I again point out that it is important for your office and the Planning and Zoning Commis- sion to consider from a purely planning perspective problems which are created in facilitating the project's review and implementa- tion on a staged basis. PJT /mc Doremus & c ®m Pang 608 east hyman avenue • aspen, colorado 81611 • telephone: (303) 925 -6866 August 2, 1984 AUG - 3 04 Sunny Vann, Planning Director Aspen /Pitkin County Planning Office 130 South Galena Aspen, Colorado 81611 Re: Need to phase the.preliminary PUD application of the Lodge portion of the Aspen Mountain Project. Dear Sunny: This letter, on behalf of the Aspen Mountain Project applicants, is to formally request the phasing or staging of the Preliminary portion of the PUD application. This procedure was accepted at the Conceptual stage and we feel worked to the advantage of all parties enabling the City to isolate and concentrate separately on the details of each of the two essentially independent ele- ments of the PUD. The mere bulk of the required material in the 'apblications.themselves favored separate reviews. At the same time, the applicants were sensitive to the fact that the entire project was being considered as a single PUD with certain aspects which cannot properly be segregated, and placed strong emphasis on adequately covering those issues in the first review. It is generally agreed that the code is vague and interpretive on a split.PUD application. In our memorandum to you dated April 8, 1984 on the subject of: Suggested procedure for Preliminary PUD stage for hotel phase of the Aspen Mountain Project, we `quoted Section 21 -12 (Q) of the Aspen code which states that "Where the preliminary plat covers only part of the subdivider's adjacent holdings, a sketch plan for such other lands shall be submitted, and the proposed streets, utilities, easements and other improve- ments of the tract under review shall be considered with reference to t'.,.e proposed development of the adjacent holdings. We went on to su5� ;gest that there is nothing in the code which specifically pro'�irits this.staging. Many arguments can be made in favor of separating the lodge component of the project from the residential in addition to the ease of review stated above. Not the least of which is the urgency to make financial and scheduling arrangements in order to move ahead with construction. In the absence of Preliminary approval, design development cannot go forward. In the absence of design development architectural plans, bids cannot be Sunny Vann -2- August 2, 1984 obtained and therefore financing cannot be concluded. Finally, there is an issue totally outside our control which is the existence of geologic hazards associated with the -Top of Mill residential portion of the project. This issue is being studied and a report prepared by the Colorado Geologic Survey, over which we have no control. Our Conceptual approval for the Lodge com- ponent of the project expires October 2nd, 1984. We have deter- mined, as.a result of meetings with our prime.contractor, that in order to.begin construction first thing next spring, for a completion of the.west wing for operation beginning the 1986 -87 winter season, we must phase the Preliminary application. The Ski.Company and others have publicly stated that until the short -fall of accommodations in the community is addressed, the economy of Aspen will seriously suffer, particularly,during the reconstruction period of thE, so- called Cantrup holdings. May we.suggest this approach - that we be permitted to submit a bifurcated Preliminary Submission for the Lodge component of the PUD which would be reviewed and acted upon forthwith. Immed- iately following.the Lodge submission, with a date certain, the Residential portion would be prepared so'that it could be re- viewed and acted upon following the Lodge application. If; for any reason an issue arose regarding a'matter of PUD concern which was not adequately addressed in the Lodge component, the material in the Residential application would be available by that time for review. In this way the issues relating to the entire PUD could be dealt with and the interests of the City will be protected. We ask for your earliest.response to this matter. Ve incerely, ohn Doremus Planning Coordinator JD. /ght 608 east hyman avenue • aspen, colorado 81611 • telephone: (303)925 -6866 PUBLIC NOTICE RE: Aspen Mountain Lodge Preliminary GMP /Subdivision NOTICE IS HEREBY GIVEN that a publ November 20, 1984, at a meeting to begin Aspen Planning and Zoning Commission, in S. Galena, Aspen, Colorado, to consider Preliminary GMP /Subdivision Submission for PUD. is hearing will be held on at 5:00 P.M., before the City Council Chambers, 130 the Aspen Mountain Lodge the lodge portion of their For further information, contact the Planning Office, 130 S.Galena, Aspen, Colorado 81611 (303) 925 -2020, ext. 224. s /Perry Harvey Aspen Planning and Zoning Commission Published in the Aspen Times on October 18, 1984. City of Aspen Account. ucr z 611 ► � IPLANNING ®FF'ICfE B. GALENA iLORADO 01611 P _ r N01' L')I�:1..] VIRAE::L.1 =: f`�: [3111 =;E :3`.� 1_ji 1�a1��1_.l•� '1'Cl F [:1Rbdfa!°t.D �; Doremus &.company 608 east hyman avenue • aspen, colorado 81611 • telephone: (303) 925 -6866 MWMnP AMnTTM APR - 1984 TO: Sunny Vann Planning Director City /County Planning Office ASKN / PITKIN CO; FROM: John Doremus and Joe Wells PLANNING OFFICE DATE: April 8, 1984 SUBJECT: Suggested procedure for Preliminary PUD stage for hotel phase of the Aspen Mountain Project. I.- General - Critical to the Lodge's proceeding, as.we see it, is a determination by the City that the applicant.may either divide the original PUD into two PUD's (the Hotel project, as the first and the three residential projects as the second), or treat the PUD as a phased project, with detailed review of the residential projects to be handled after consideration of the Lodge phase. Either approach is acceptable to the applicant, but we are concerned about interpretations of other Code provisions that might cause.one approach to be preferable to the other. Section 21 -12 (Q) of the code states that "Where the preliminary plat covers only a part of the subdivider's adjacent holdings, a sketch plan for such other lands shall be submitted, and the proposed streets, utilities, easement's and other improvements of the tract under review shall be considered with reference to the proposed development of the adjacent holdings ". We have determined that there is nothing in the Code which prohibits this staging. As result of meetings with the contractor, we have determined that this is the only procedure which will allow the hotel project to begin construction in 1984, completing the new facilities by the spring of 1986. The Ski Company has publicly stated that until the shortfall of accommodations in the City of Aspen is addressed, the economy of Aspen will seriously suffer, particularly during the reconstruction period of the so- called Cantrup holdings. Page 2 Further, it is also clear to us that the issues of conceptual approval of Top of Mill by the City Council and P & Z approval of the Applicant's proposed employee housing must come prior to the formal consideration of the Preliminary and Final Plat reviews. A final consideration critical to the process is a determination that we may submit the Preliminary and Final Plat concurrently for simultaneous review, the sole purpose of which is to speed the process to allow construction to begin in 1984 for a first phase one completion in the spring of 1986. II. Subdivision Requirements - With respect to the various specific sections of the Code having to do with the Preliminary and Final Plat proceedures, we ask for your comment on the following: A. Section 20 -12 A new-plat and necessary attachments prepared under the direction of Alpine Surveys will specifically address Preliminary Plat items (a) through (q) for Lot 1 of the Aspen Mountain PUD. B. Section 20 -15 A new plat and necessary attachments prepared by Alpine Surveys will specifically address Final Plat items (a) through (n) for Lot 1 of the Aspen Mountain PUD. Because of the separation of Lot 1 into its own PUD phase, there may be certain elements of the entire Aspen Mountain PUD which you, and perhaps the Engineering Department, wish to accompany the Lot 1 Preliminary and Final Plats. Such items as utility improvements, street design and parking may fall into this catagory. Please indicate those areas to us as soon as possible. Page 3 C. Section 20 -16 We will provide plans for all of the improvements identified in this section for Lot 1 as well as those for the balance of the PUD where further architectural design work does not affect these improvements. Some of the items listed for off -site improvements will be resolved through the Lodge Improvement District program; however, off -site utilities are well under way and should not be affected by the District. D Section 20 -18 It is our interpretation that only the 700 South Galena residential units are subject to the provisions of paragraph A. As 700 South Galena will be included in phase 2 of the Aspen Mountain PUD, the application - under consideration does not apply. With respect to paragraphs B, C D and E, the necessary easements to comply with paragraph C with respect to the Dean Street Trail, will be submitted with the application. E. Section 20 -23 C. Item 1 is supplied as a requirement of Preliminary Plat, Item 2 would only be required for conversion and is not applicable; Item 3 will be provided'as part of the PUD requirement section; Items 4 and 5 will be prepared as required; Item 6 has or will be prepared as part of the Conceptual Application as well as Item 7. III. PUD (REQUIREMENTS) A. Section 24 -8.5 As we have mentioned, a determination needs to be made as to whether splitting the PUD into two parts should technically be treated as a phased PUD or two separate PUD's. We would like to treat the Lodge site separate from the three residential projects; Page 4 we believe that each of the two parts complies with the general PUD requirements. We are concerned, however, about your past reluctance to include non - contigious parcels under one PUD and the effect that might have on how 700 South Galena is handled. We remind you that there is no requirement for contiguity under the PUD provisions. B. Section 24 -8.6 This section requires the applicant to enter into an agreement with the City upon final approval suggesting that this agreement can be the same as the "subdivision agreement ". We have not uncovered anything in the subdivision section which describes such an agreement. C. Section 24 -8.9 We will comply with the Preliminary Plan requirements of this section in its entirety for Lot 1 (including 20 -12), and provide data regarding maximum development and construction plasing for the balance of the site. Architectural floor plans and all exterior elevations will be provided for Lot 1 as required. The Final Plan submission will comply with 20 -15 and 24 -8.2. D. Section 24 -8.14 Mandatory PUD will not apply to Lot 1. E. Section 24 -8.16 Final plans will include a landscape plan and a written statement for.Lot 1 in compliance with 24 -8.16. Final landscape plans for the other sites will not be provided at this t ime,and we anticipate that final landscape plans for off -site improvements will be developed as a part of CCLC's program. 344: Regular Meeting Aspen City Council February 28, 1983 system. Busch said as a community, Aspen should use every quality marketing tool available The trolleys can be basic transportation as well as a unique feature. These trolleys are irreplaceable. Summers said he did not generate any interest in a group wanting to run the trolleys in Aspen with their own money. He did generate interest from other towns to buy the trolleys and run their own system. Busch told Council the agreement with Michael Hernstadt is that he would take care of the trolleys; he has not done so. Councilwoman Michael asked if there was business interest in town that would operate the trolleys. Pil Dunaway said he is in favor of the.trolleys because they would be an asset. However, people do not like the overhead wires and the noise. On the other hand, people would like the uniqueness of the trolleys. This would be a good shuttle from Rubey park to the Rio Grande. Dunaway said he felt this would be a service to the community and is a needed shuttle in the downtown core. This should be a city function, just as the buses are a city function. jl Summers told Council the CCLC voted in favor of keeping the trolleys as a possible alterna- tive in the central core area and requested Council not sell the trolleys. Councilwoman Michael said the closer Rubey Park comes to being a transportation center, the. more important the trolleys become. However, the city Council has a capital improvements plan with many, many items that are day -to -day needs. Councilwoman Michael said she would like more information on the routes, what this would do to the streets, etc. Councilwoman Michael said the city should either sell the trolleys or do something with them. Councilman Knecht moved to keep the trolley cars for an additional year; look at the whole thing with the CCLC, and with the transportation group, and see if something can get accomplished next year; seconded by Councilman Parry. Mayor Edel said that the assumption that the trolley cars are a positive element is an assumption at best. Mayor Edel said he felt for Aspen they are far from positive. 14ayor Edel said h ere is a list of $25,000,000 of capital improvements before Council for approval. Mayor Edel said no private enterprise will come forward to finance this. Mayor Edel reiterated there is a list of $25,000,000 improvements that are essential to the health,.safety and well being of the city. The city has spent a lot of money::to get rid of wires, now this would necessitate putting wires back. Mayor Edel said the city wants people to walk through town and to spend money in the town. Mayor Edel said.iie felt trolleys we {e inappropriate in Aspen and they are a mistake financially. , Councilman Parry said he felt trolleys would be a great asset. A trolley from Rubey Park to the Rio Grande is an essential link in the entire transportation system. Busch pointed out that two city studies have recommended shuttles. Terry Harp said shuttles could be used for the design conference, the M.A.A. skier shuttles, walking tour, etc. Harp told. Council he has been asked to run shuttle with his horses for six years. Har,) suggested selling the trolleys and have a carriage maker build trolleys that could be pulled by horses. All in favor, with the exception of Mayor Edel. Motion Carried. Councilmember.s Michael and Parry left Council chambers (it was the last M.A.S.H. series). it EDELWEISS CHALET RECONSTRUCTION Colette Penne, planning office, told Council this is the first project in the lodge L -3 rezoning action that is requesting reconstruction permission. P & Z has approved the reconstruction of the lodge. The proposal is to tear down the existing lodge and build the Hotel Lenado. Approval has been given for rebuilding to the 1:1 FAR. Council needs to exempt the employee unit, a 400 square foot studio unit. The applicant is also asking that the newly developed lodge be condominiumized. Ms. Penne pointed out there are twelve conditions recommended by P & Z. In condition 8, the applicant would like to delete , "the use of five clean - burning designed wood stoves and an energy efficient fireplace" and replace, "that the applicant must abide by newly proposed city air pollution regulations in the form they are finally enacted by the city ". Ms. Penne told Council she felt this is fair. Ms. Penne said condition 11 is about a promissory note in the amount of 30 per cent of the fair market value. Council has the authority not to require this promissory note. P & Z has to send this condition up; Council has the ability to waive this. Ms. Penne pointed out that since the old lodge is being torn down and a new one reconstructed, it is somewhat unnecessary. The staff recommended that condominiumization not be finalized until the building is completed. Councilman Knecht moved to grant subdivision exception for the purposes of lodge condomini- umization, GMP exemption for the construction of one studio employee unit and a parking exemption for that unit to the reconstruction of the Edelweiss Chalet, subject to the conditions 1, 2, 3, 4, 5, 6, 7 with change, 8 with change, 9, 10 and 12 in the planning office memordandum of February 28, 1983; seconded by Councilman Collins. Councilman Collins said he has had preliminary talks with the architect about some engineering, however he does not feel this is a conflict. Council agreed. All in favor, motion carried. NICK'S FRESH SEAFOOD City Manager Chapman told Council Councilman Parry asked this be on the agenda. Nick's t Seafood is primarily a wholesale operation with limited retail. They would like o move to an S /C /I zone. When they approach the building department, they were informed retail sales are not permitted in the S /C /I zone. Councilman Collins suggested this proposal should go through the proper channels, and they should make an application to F & Z. Council agre,:d. RESOLUTION_ 6, SERIES OF' 1983 �. -nne, Davis: Horn Impr_eve,aents Assistant City Manager Ron Mitche(ll said that Council has already approved these improve- ments by motion; they need to foxes alize them. These improvements are a fence and to enciose one room. Councilman F.ech- moved to approve esoliif-i-on €o, Scra2s of 1983; seconded by r��:r,cii:aan Collins. Al:. in favor, mct_oic caarr'ed.